The Commodity Futures Trading Commission (CFTC) has issued an advance notice of proposed rulemaking (ANPRM) to oversee leveraged retail crypto trading. The proposal introduces two frameworks: Regulation CTX for leveraged transactions and Regulation CAM, which establishes a new registration category for crypto asset markets.
Platforms providing leveraged or margined trading to retail customers would be subject to requirements including proof-of-reserves and anti-manipulation controls. This framework is intended to serve as a voluntary federal alternative to state-level money transmitter licenses, relying on existing authority under Section 2(c)(2)(D) of the Commodity Exchange Act.
The advocacy group Better Markets criticized the proposal on October 5, 2026, arguing that the CFTC is ill-equipped to protect retail investors compared to the Securities and Exchange Commission (SEC). Benjamin Schiffrin of Better Markets noted that the CFTC traditionally focuses on institutional markets and lacks a clear investor protection mandate.
CFTC Chairman Mike Selig stated the initiative aims to address regulatory gaps following the failure of the Clarity Act in September 2026. The agency is currently accepting public input during a 60-day window to refine the proposed rules.
