CFTC Proposes New Federal Regulations for Crypto Exchanges
- The CFTC published an advance notice outlining Regulation CTX and Regulation CAM to allow crypto exchanges to register as federally regulated “crypto asset markets.”
- Offering leverage could bring fully paid trades under CFTC oversight unless customers take actual delivery of their crypto.
- Exchanges that don’t offer leverage may continue operating under state licenses.
- The public has a period of 60 days to comment on the proposed regulations.
- Regulation CAM would create a “crypto asset market” license, allowing trades through futures commission merchants and brokers subject to anti-money laundering rules.
- CFTC Chairman Michael Selig stated the rules aim to prevent fraudulent schemes like FTX.
The CFTC’s proposal aims to provide a federal regulatory framework for crypto exchanges, focusing particularly on those offering leverage. This move follows the failure of the Clarity Act in the Senate and seeks public input before finalizing the rules.
With these new regulations, the CFTC intends to ensure that leveraged crypto trades are conducted under federal oversight, potentially requiring customers to hold their private keys for actual delivery of assets.Source
