The Commodity Futures Trading Commission has started writing its own CFTC crypto rules for exchanges without waiting for Congress. On Oct. 5, the CFTC published an Advance Notice of Proposed Rulemaking (ANPRM) asking for public comment on two proposed regimes: Regulation CTX (crypto asset transactions) and Regulation CAM (crypto asset markets).
It is the earliest stage of rulemaking, not a final rule. But it shows how the U.S. could regulate crypto trading under laws that already exist.
What the CFTC announced on crypto rules
According to the CFTC press release, the ANPRM concerns Section 2(c)(2)(D) of the Commodity Exchange Act. That section covers retail commodity transactions offered on a leveraged, margined or financed basis. The CFTC wants comment on how to:
- prevent abusive practices in crypto markets under a “uniform national regime”;
- give crypto-specific guidance on compliance practices the agency has seen since it began overseeing parts of crypto in 2014; and
- create a new subcategory of designated contract market (DCM), called a “crypto asset market,” built specifically for these transactions.
CFTC Chairman Michael Selig said the agency is acting on “President Trump’s directive to propose a federal crypto asset regulatory market structure using the CFTC’s existing statutory authorities” and wants rules “designed to prevent, rather than only prosecute after the fact, fraudulent schemes such as FTX.”
Leverage is the trigger
The key detail, highlighted by WilmerHale and Fenwick, is what triggers the rules. Plain spot purchases, where you pay in full and receive the coins, are not the focus. The framework applies when a platform offers retail customers crypto on a leveraged, margined or financed basis and actual delivery doesn’t happen within the statutory window.
Under the proposal:
- Regulation CTX would define which retail crypto transactions fall under the law.
- Regulation CAM would create a tailored DCM category for venues that trade only those transactions, with core principles adapted for crypto and customer access through futures commission merchants (FCMs).
- Exchanges could choose to register as a crypto asset market in order to offer leveraged retail products legally.
Fenwick calls it “a federal charter for crypto exchanges, with leverage as the trigger.”
Timeline
- Oct. 2: White House regulatory review (OIRA) concluded.
- Oct. 5: CFTC approved and released the ANPRM.
- Comment period: 60 days from publication in the Federal Register, which had not happened as of Oct. 8.
- Next steps: a formal proposed rule, a second comment period, then a final rule. That realistically takes months.
The SEC is running a parallel process. Comments on the SEC’s proposed crypto asset rules are due Oct. 20, according to law firm client alerts. Together, the two agencies are trying to set market structure through regulation while the CLARITY Act remains stalled in the Senate.
Who the CFTC crypto rules would affect
- Offshore exchanges that offer leverage to U.S. retail users would have a clearer, but stricter, route to doing it legally.
- U.S. exchanges could add margin and leveraged spot products under CFTC supervision.
- Retail traders would get exchange-level protections such as segregated funds, surveillance and FCM standards on leveraged crypto, but likely fewer extreme-leverage options.
Leverage has been at the center of this week’s market action. More than $1 billion in positions were liquidated as bitcoin fell toward $80,000 (our report). The SEC also just approved 3x leveraged bitcoin and ether ETFs (our coverage). Regulators are clearly focused on how retail investors get leveraged crypto exposure.
CryptoVank’s take
Building the CFTC crypto rules around leverage is a smart choice. It targets the products that cause the most retail harm while largely leaving simple spot buying alone. The weakness is durability. A framework built on agency interpretation can be reversed by a future commission or challenged in court, which is why the industry still wants legislation. In the meantime, anyone who has a view on how leveraged crypto should be regulated now has a formal way to comment.
For background on how regulated crypto products work, see our guide to crypto ETFs.
CFTC crypto rules FAQ
Is this a new CFTC crypto rule?
No. It is an advance notice of proposed rulemaking that asks for public comment before any formal proposal.
Does it affect buying bitcoin on Coinbase?
Not directly. The focus is retail crypto transactions that are leveraged, margined or financed, not fully paid spot purchases.
What is a “crypto asset market”?
A proposed new subcategory of CFTC-registered exchange (DCM) designed specifically for retail crypto transactions covered by Regulation CTX.
How can I comment?
Comments must be submitted in writing within 60 days of the notice’s Federal Register publication. They will be posted on Regulations.gov.
Sources
- CFTC Press Release 9307-26 (Oct. 5, 2026)
- CFTC: ANPRM text, Regulation CTX and CAM
- WilmerHale: CFTC Seeks Input on Crypto Asset Regulatory Framework
- Fenwick: CFTC Previews Regulation CTX and CAM
This article is for information only and is not legal or financial advice.
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