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CFTC proposes federal framework for some leveraged crypto exchanges
The proposal would let qualifying US exchanges opt into a federal regime instead of relying mainly on state money-transmitter licensing, using the CFTC's authority over margined and leveraged spot assets.
The US Commodity Futures Trading Commission proposed a new federal regulatory framework for cryptocurrency exchanges that offer leveraged digital asset trading, aiming to bring portions of spot crypto under federal supervision, LiveMint Markets reports.
The CFTC said exchanges would be able to opt into the federal regime rather than primarily operating under a fragmented patchwork of state-level money-transmitter licences.
The proposal would rely on the CFTC's existing authority to oversee margined and leveraged spot assets, and it comes after Congress failed to advance broader crypto legislation.
The CFTC has previously sought broader powers to regulate spot crypto markets, which it describes as operating in a regulatory grey area, but extending comprehensive oversight would require Congressional action, according to the proposal outline.