The US Commodity Futures Trading Commission has outlined a proposed federal framework for crypto exchanges that offer leveraged trading to retail customers, marking a broader push to clarify how parts of the digital asset market could come under national oversight.
Announced by CFTC Chairman Michael S. Selig, the effort centers on two requests for public input, Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets. The agency is presenting the plan as a federal option for firms in a market that still lacks a comprehensive national crypto law.
A three-tier structure for crypto markets
The proposal organizes crypto trading venues into three categories. Ordinary spot exchanges would remain primarily under state money transmission rules, while the CFTC would continue to exercise anti-fraud and anti-manipulation authority over that activity.
A second category would cover retail trading that involves margin, leverage, or financing. Under the CFTC’s proposal, that segment would be treated as a new Crypto Asset Market, or CAM, with a specific federal registration path and a more detailed compliance regime.
A third category would include derivatives products such as perpetual contracts, which would sit separately from ordinary spot markets and the proposed CAM framework.
What the CAM regime would require
The CFTC’s main focus is the CAM category, where the agency says added safeguards are needed for retail customers using leveraged products. Exchanges that register in this group could be treated as a new type of derivatives exchange.
Those platforms would face market surveillance obligations, financial safeguards, and rules designed to protect customer funds. The agency is also considering proof-of-reserves requirements for exchanges that hold customer assets in omnibus accounts, signaling that custody practices are a major part of the discussion.
The framework would also rely on futures commission merchants to handle customer accounts and funds. Those firms would remain subject to existing customer protection rules, as well as anti-money laundering and customer identification requirements. The proposal also notes that self-custody issues are still being examined.
How the proposal addresses actual delivery
One of the most closely watched parts of the plan is the treatment of delivery under the Commodity Exchange Act. The CFTC said crypto assets sent to a customer’s external wallet within 28 days would generally satisfy the law’s interpretation of actual delivery.
That point matters because the actual delivery standard has long shaped whether a leveraged retail crypto transaction falls inside the CFTC’s jurisdiction under existing law. By spelling out a 28-day path tied to transfers to an external wallet, the agency is attempting to give firms a clearer compliance benchmark.
A partial federal framework, not a complete rewrite
The proposal does not amount to a full federal regime for the entire crypto market. Exchanges whose business models allow it could still continue operating under state licenses, while the CFTC’s approach would provide an additional federal route, especially for firms involved in retail leveraged trading.
The agency also framed the initiative as part of a wider effort to support onchain finance without treating all participants the same way. In particular, the discussion highlights the importance of distinguishing software developers from parties that actually control trades or hold customer assets.
For now, the immediate next step is public consultation on the CTX and CAM proposals. The broader question of whether all crypto exchanges should ultimately be federally registered would still require action from Congress.
Source: cryptopotato.com