CFTC considers rules for retail leveraged crypto trading
CIE News ·
The CFTC issued an advance notice of proposed rulemaking for leveraged retail crypto transactions under the Commodity Exchange Act, opening a 60-day public comment window.
The U.S. Commodity Futures Trading Commission issued an advance notice of proposed rulemaking regarding retail digital asset transactions offered on a leveraged, margined, or financed basis, according to Bitcoin.com News. The regulatory action initiates a process under Section 2(c)(2)(D) of the Commodity Exchange Act to evaluate applying existing statutory standards to retail crypto transactions.
The agency is seeking public input on safeguards against abusive conduct, sector-specific market standards, and a possible crypto asset market registration subcategory for Designated Contract Markets. U.S.-regulated trading venues, including Coinbase Financial Markets and Kraken, could be affected by the emerging framework.
According to Bitcoin.com News, the action remains an advance notice rather than a formal rule proposal. Public comments will be accepted for 60 days following the notice's publication in the Federal Register before the agency determines whether to introduce formal regulations.