The U.S. Commodity Futures Trading Commission has issued an advance notice of proposed rulemaking for an optional federal framework covering exchanges that offer retail customers crypto asset transactions on a margined, leveraged or financed basis. Regulations Crypto Asset Transactions and Crypto Asset Markets would use the agency’s existing authority to subject these platforms to uniform market integrity and customer protection standards. Ordinary spot exchanges would remain generally subject to state money transmission regimes because only Congress can require all crypto exchanges to register federally. Existing designated contract markets could offer these transactions under tailored rules, while other firms could register as either a designated contract market or a new crypto asset market subcategory limited to covered crypto transactions. The contemplated regime would apply requirements for listings, surveillance, financial integrity, customer property, conflicts and system safeguards, potentially including proof of reserves for omnibus customer accounts. Futures commission merchant intermediation would bring customer accounts under disclosure, capital, segregation and Bank Secrecy Act requirements. The CFTC also proposes treating delivery to a customer’s external, noncustodial wallet within 28 days as generally satisfying the statutory actual delivery exception.
U.S. Commodity Futures Trading Commission seeks input on optional federal regime for leveraged retail crypto trading
The U.S. Commodity Futures Trading Commission is seeking input on an optional federal regime for exchanges offering margined, leveraged or financed retail crypto transactions. Existing designated contract markets could offer these products, while other firms could register under a new crypto asset market category. The framework would impose tailored market integrity, customer asset and anti-money laundering safeguards.