CFTC Chair says proposed rules would allow only federally regulated exchanges to offer crypto leveraged trading
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AT A GLANCE
CFTC The chair said that under the proposed rules, only federally regulated crypto exchanges may offer leveraged trading.
Article
CFTC Chair: Only federally regulated crypto exchanges may offer leveraged trading
PANews October 7 reported that the chair of the U.S. Commodity Futures Trading Commission (CFTC) Michael Selig said that under its proposed rules, only federally regulated cryptocurrency exchanges may offer leveraged trading. States may provide only money transmission-related services. He also noted that the 100 x leverage commonly seen in offshore markets has never been approved for offering in the United States, and this time will be no exception.
Michael Selig said that under the proposed rules, only federally regulated cryptocurrency exchanges may offer leveraged trading.
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Michael Selig said that states may provide only money transmission-related services.
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Michael Selig noted that the 100 x leverage commonly seen in offshore markets has never been approved for offering in the United States, and this time will be no exception.
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The news was published by PANews on October 7.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The core of this statement is that the proposed rules would limit crypto leveraged trading services in the United States to federally regulated exchanges; state-level business is described as limited to money transmission-related services.
Why it matters to readers
If the proposed rules are implemented as stated, which exchanges in the U.S. market may offer leveraged trading will depend on whether they are federally regulated.
Beginners should note that this concerns the proposed rules and eligibility for exchanges to provide leveraged services; the material does not establish that the rules have formally taken effect.
Risks and unknowns
The material does not include Michael Selig's original speech or the full text of the proposed rules.
Whether the proposed rules have been published, when they will take effect, and their final content cannot be confirmed from the material.
The material does not specify the eligibility criteria for being “federally regulated.”
The material does not specify the leverage multiple permitted in the United States.
The material does not specify how the rules would apply to specific exchanges.
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Related concepts
Federal regulation
This term is not in the glossary yet. Browse related concepts in the glossary.
A trading method that uses borrowed funds to establish a position larger than the trader’s own capital, thereby amplifying both potential gains and losses.
