The CFTC has proposed CTX and CAM rules that would create a federal framework allowing US crypto exchanges to offer retail leverage, addressing a major product gap with offshore competitors. The initiative relies on Section 2(c)(2)(D) of the Commodity Exchange Act and remains optional for spot exchanges, though it could attract platforms seeking leveraged products. Exchanges entering the framework would face substantial oversight including FCM intermediation, proof-of-reserves requirements and compliance with Bank Secrecy Act obligations. The CFTC announced the rulemaking on October 5 and is seeking public input before drafting detailed rules. The agency’s goal is to pull trading activity now concentrated on offshore venues into regulated US markets without waiting for Congress to act.
Source: Read the original article
