The U.S. Commodity Futures Trading Commission (CFTC) published an Advanced Notice of Proposed Rulemaking (ANPRM) on Monday, October 5, seeking public comment on a plan to bring leveraged, margined, and financed crypto trading under a new federal registration framework.
A new “crypto asset market” registration
The proposal would create a fresh registration category called a “crypto asset market” for platforms that offer leveraged, margined, or financed trading to retail customers. Exchanges that want to list crypto perpetuals or prediction markets could instead register as designated contract markets, the CFTC’s standard category for derivatives venues. Platforms handling basic spot crypto transactions would not need to register and would instead fall under state oversight.
Much of that leveraged business has grown offshore. Exchanges like OKX and Bybit often let overseas customers trade perpetual futures with as much as 100x leverage on tokens such as bitcoin or solana, while U.S. customers can already access regulated perpetual-style products through domestic venues including Coinbase and Kraken. Buying crypto itself with borrowed money has lacked a clear federal framework until now.
Speaking at Fordham Law School, CFTC Chairman Michael S. Selig described the measure as a “federal option for crypto asset exchanges” rather than a universal mandate. “Only Congress has the authority to mandate that all crypto asset exchanges register with the Commission,” he said.
What the rulemaking covers
The ANPRM addresses section 2(c)(2)(D) of the Commodity Exchange Act and the retail commodity transactions involving crypto assets, or CTXs, that fall under it. The Commission is soliciting comment on how it can prevent abusive practices in crypto markets under a uniform national regime, provide crypto-specific guidance on commonly accepted industry practices, and codify the “crypto asset market” subcategory of designated contract market registration.
“Today’s action is a critical step in the CFTC’s ongoing efforts to ensure America remains the crypto capital of the world,” Selig said. “The American people deserve clarity, certainty, and consumer protections in the crypto asset markets.” He added that the Commission will take every step to “prevent, rather than only prosecute after the fact, fraudulent schemes such as FTX.”
Why the CFTC is moving now
The proposal arrives after Congress failed to advance the Digital Asset Market Clarity Act, which would have split crypto oversight between the CFTC and the SEC. The Senate blocked the bill in a 50-to-49 procedural vote last month, and both agencies have since moved to fill the gap using their existing authorities. The CFTC’s push lands alongside the SEC’s recent approval of the first 3x leveraged Bitcoin and Ether ETPs and the agency’s continued enforcement work, including a $31 million judgment in the Fundsz fraud case.
Comments on the ANPRM must be received within 60 days of its publication in the Federal Register.
