CFTC seeks input on leveraged crypto trading rules

• Key insight: After a much-vaunted crypto market structure bill failed in the Senate last month, the Commodity Futures Trading Commission is moving ahead with a federal framework for leveraged crypto markets, and is seeking industry input into what that framework should look like.
• Expert quote: "Today's action is just the beginning. The CFTC is starting the process of addressing gaps in crypto-asset market structure and creating clear rules of the road for innovators and market participants." — CFTC Chair Michael Selig
• Forward look: With the CLARITY Act stalled, the CFTC and SEC have said they will pursue their own rules to clarify their respective responsibilities and create clearer registration pathways for exchanges.

WASHINGTON — The Commodity Futures Trading Commission on Monday sought public input on a potential federal regulatory framework for leveraged crypto trading, following through on a plan previously outlined by the agency's chair.

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The agency's advanced notice of proposed rulemaking outlines two complementary frameworks — Regulation Crypto Asset Transactions, or CTX, and Regulation Crypto Asset Markets, or CAM — that would establish rules for leveraged crypto transactions and the exchanges that offer them.