CFTC opens rulemaking for leveraged crypto markets

The US Commodity Futures Trading Commission opened a new rulemaking process aimed at retail crypto transactions that use leverage, margin or financing. The agency published an advance notice of proposed rulemaking seeking comments on how Section 2(c)(2)(D) of the Commodity Exchange Act should apply to these transactions.

Chairman Michael Selig described the action as the first step toward a broader federal market framework for crypto. The agency is considering rules tailored to venues that offer leveraged digital-asset trading, including how those platforms could operate under CFTC registration and what customer-protection requirements should apply.

The notice is not a final rule and does not immediately change how crypto platforms can operate. It starts a public-comment process that could shape later proposals, giving the CFTC a route to build a national framework while Congress continues debating broader digital-asset market-structure legislation.