CFTC proposes first comprehensive crypto market rules

The CFTC has published its first comprehensive crypto regulatory framework, a pair of proposals bringing leveraged crypto activity under federal oversight as the agency moves to fill the gap left by the CLARITY Act's Senate defeat. Regulation CTX covers crypto transactions involving leverage, margin or financing, while Regulation CAM would create a new registration category for platforms — "crypto asset markets" (CAMs) — a narrower status than full designated contract markets. The rules also cover exchange registration and clearing, with public comments due December 14.

Chair Mike Selig said the rules "codify a pathway for crypto asset exchanges to operate under uniform national oversight by the CFTC," replacing what he called the prior administration's regulation-by-enforcement approach. The framework is designed as an optional federal path — exchanges can opt into oversight rather than being forced in — and the chair's senior advisor Michael Passalacqua has been publicly explaining how the opt-in would work; whether the industry embraces it remains an open question.

The proposals leave a significant gap: the CFTC still lacks authority over direct spot trading of assets like bitcoin and ether, beyond policing fraud and manipulation, leaving state money-transmission laws in charge of that activity. Many platforms, including Coinbase, Crypto.com, Bitnomial, Kalshi and Polymarket, are already registered DCMs.