The CFTC has introduced its first rules for regulating the US crypto market, launching two regimes—Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM). The new standards set requirements for CFTC-registered exchanges that offer crypto asset trading.

Registration with CFTC Enables Retail Margin and Leverage

Crypto exchanges opting for the federal regime will be able to officially offer retail clients margin trading, leverage, and financed transactions under federal oversight.

Unified Requirements: Client Asset Protection and Transparency

These platforms will be subject to federal requirements for safeguarding client assets, preventing manipulation and conflicts of interest, and ensuring transparent trading.

Trading Not Limited to CFTC Platforms

The new rules do not require crypto assets to be traded exclusively on CFTC platforms; a separate act of Congress would be needed for that.

BTC and ETH Under CFTC Oversight

BTC, ETH, and several other crypto assets have previously been recognized as not being securities and fall under CFTC regulation.

CFTC and SEC Acting Within Existing Authority

CFTC Chair Michael Selig called this the first stage of crypto market regulation. After the CLARITY Act failed to advance in the US Senate, the CFTC and SEC have effectively started to develop new rules within their current authority.