The U.S. Commodity Futures Trading Commission (CFTC) has proposed a federal framework for crypto exchanges offering leveraged or margined spot trading to retail customers. The plan would create a voluntary category of regulated venue called a crypto asset market.
Exchanges that opt in could follow one federal regulatory regime instead of navigating state-by-state money-transmitter licensing requirements. They would face rules including anti-market-manipulation controls and a requirement to provide proof of reserves.
The proposal relies on the CFTC’s existing authority over leveraged retail trading and would not require new legislation from Congress. Congress recently failed to pass a comprehensive crypto regulation bill.