The Commodity Futures Trading Commission (CFTC) has introduced a new regulatory framework for leveraged crypto trading, bypassing the need for Congressional approval. The agency published an advance notice of proposed rulemaking on October 5, 2026, outlining two new structures: Regulation CTX and Regulation CAM.
Regulation CTX targets leveraged and margined retail transactions, while Regulation CAM establishes a specific subcategory for crypto asset markets. Platforms registering under CAM must implement anti-manipulation controls and provide proof-of-reserves. The proposal does not set specific leverage caps, requiring instead that offerings undergo staff review.
This initiative follows the Senate's rejection of the CLARITY Act on September 15, 2026, which failed in a 49-50 vote. CFTC Chairman Michael Selig is utilizing existing authority under the Commodity Exchange Act to advance these rules, though the agency acknowledges the limits of its power without new legislation.
Legal experts warn that the strategy faces uncertainty due to the 2024 Supreme Court ruling in Loper Bright Enterprises v. Raimondo. This decision reduced judicial deference to agency interpretations of law, potentially complicating the enforcement of the new framework if it faces legal challenges during or after the 60-day public comment period.
