TLDR
- The CFTC proposed two new rules, Regulation CTX and Regulation CAM, to oversee leveraged and margined crypto trading.
- A gap remains for spot crypto trading, which stays under state money transmission laws.
- The CFTC can still act against fraud and manipulation in spot markets like Bitcoin and Ethereum trading.
- The proposals follow the failed Digital Asset Market Clarity Act in the Senate last month.
- Both the CFTC and SEC are currently run by single-party commissioners, with several seats still open.
The Commodity Futures Trading Commission proposed two new rules on Monday aimed at crypto trading. The rules target transactions that involve leverage, margin, or financing.
CFTC Chairman Mike Selig announced the proposals at Fordham Law’s Blockchain Regulatory Symposium. He said the agency is acting “with or without legislation” from Congress.
🇺🇸 The U.S. is NOT waiting for the CLARITY Act.
• The SEC approved on-chain trading of tokenized U.S. stocks.
• The CFTC told Wall Street to prepare for MASS TOKENIZATION.
• The SEC approved the first 3x leveraged Bitcoin and Ethereum ETPs.
• The CFTC sent new crypto…
— Crypto Rover (@cryptorover) October 5, 2026
The two rules are called Regulation CTX and Regulation CAM. CTX covers crypto trades that use borrowed money or margin. CAM creates a new type of exchange registration called a crypto asset market.
What The New Rules Cover
Crypto platforms that want to offer leveraged or margined trading could register as a crypto asset market. This would be a narrower version of the designated contract market status that exchanges like Coinbase and Crypto.com already hold.
Selig said the goal is to give exchanges a clear national standard. He said this replaces enforcement actions used by the prior administration.
The rules would require futures commission merchants to act as intermediaries for these trades. This ties the activity to existing money laundering safeguards under the Bank Secrecy Act.
Transactions where assets change hands within 28 days would be exempt from some of these requirements. This is known as the “actual delivery” exemption.
The Spot Market Gap
The CFTC still lacks authority over direct spot trading of crypto assets. This includes the buying and selling of tokens like Bitcoin and Ethereum’s ether at current market prices without leverage.
Spot trading will continue to fall under individual state money transmission laws. The CFTC said it can still pursue cases of fraud and manipulation in these markets, even without broader oversight power.
Agency officials said they are unsure how much trading volume will stay in the spot market versus move to CFTC-regulated platforms. They plan to gather more information during a 60 day public comment period.
The proposals come after the Digital Asset Market Clarity Act failed to pass the Senate last month. That bill would have given the CFTC more direct authority over crypto markets through new legislation.
With that bill stalled, the CFTC is using its existing powers under the Commodity Exchange Act instead. The agency is working from retail trading provisions created under the 2010 Dodd-Frank Act.
The Securities and Exchange Commission has moved on similar issues in recent months. It proposed a tailored securities offering regime for crypto assets back in August, ahead of the Senate vote.
Last week, the SEC also proposed a rule on how investment firms should handle custody of crypto assets. Officials said the CFTC’s new proposals are meant to catch up with the SEC’s progress.
Both agencies are currently operating with reduced staff. The SEC now has only two commissioners, Chairman Paul Atkins and Commissioner Mark Uyeda, after Commissioner Hester Peirce’s departure on Friday.
Selig has been the CFTC’s only commissioner for nearly a year. President Donald Trump has not yet nominated anyone to fill the remaining seats at either agency.
A White House official said last week that nominations for both agencies are expected “in the near future.” As of Monday, no official nominees had been announced.
Selig also said the agency is considering protections for software developers who build crypto products but do not handle customer funds directly. He said a person should not need broker registration simply for writing code.
The public comment period on both proposed rules is now open for 60 days.
