CFTC Draft Rules Would Limit Crypto Leverage to Federally Regulated Venues
AI Market Summary
The CFTC's proposed rules would restrict leveraged crypto trading to federally regulated exchanges, reinforcing that high leverage commonly offered offshore is not permitted in the U.S. This raises compliance and licensing pressure on venues and could reduce leverage-driven liquidity and speculative activity for U.S.-linked flows. The move also signals a more assertive regulatory stance as Congress has not finalized crypto legislation.
Impact level
● High
Affected assets
BTC/USDT-1.48%
AI Insight · BTC/USDTAI Insight
▼ Bearish
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According to ME News, CFTC Chairman Michael Selig said in a CNBC interview on Oct. 7 (UTC+8) that the agency's proposed rules would allow leveraged crypto trading only on federally regulated cryptocurrency exchanges.
Selig said states are limited to overseeing money transmission services and cannot authorize high-leverage products. "100x leverage, which is common overseas, has never been permitted in the U.S., and it won't be permitted now," he said.
The CFTC on Monday proposed two new rules aimed at building a U.S. regulatory framework for crypto by relying on its authority over leveraged and margin trading, seeking to reduce uncertainty after Congress failed to finalize cryptocurrency legislation. (Source: BlockBeats)
