CFTC begins drafting first rules for leveraged crypto trades

The CFTC has opened an early rulemaking process and is seeking public input on two proposals covering retail crypto transactions involving leverage, margin or financing: Regulation CTX for transactions and Regulation CAM for a new category of federally registered crypto asset markets. The framework would give eligible exchanges a federal regulatory option, not require all crypto exchanges to register, and clarify how existing commodities law applies. Ordinary spot purchases and much on-chain trading would generally remain outside the proposals’ scope, leaving broader oversight questions unresolved. The initiative follows Congress’s failure to advance the CLARITY Act and relies on the CFTC’s existing statutory authority; any rules remain subject to review and public comment.