CFTC Chair Mike Selig Pushes New Crypto Platform Rules

CFTC Chairman Mike Selig on Thursday said federal regulators are moving ahead with new crypto trading rules despite Congress failing to pass the CLARITY Act.

Stronger investor protections, regulated leverage trading and expanded Bitcoin (CRYPTO: BTC) adoption are some key areas of focus.

How CFTC Plans For Crypto Market Regulations

Speaking on the Coin Stories podcast, Selig outlined how the CFTC and SEC plan to establish crypto market regulations using their existing authority. The CFTC’s proposal would allow cryptocurrency exchanges to voluntarily register under federal oversight rather than relying solely on state money transmitter licenses.

It would also permit exchanges to offer margin trading to retail investors, an activity generally unavailable under existing state-based spot trading regimes.

Registered platforms would face stricter requirements covering market manipulation, fraud prevention, customer fund segregation and trading surveillance.

Selig noted that U.S.-regulated crypto derivatives exchanges currently offer leverage of around 7x or less, suggesting similar limits could apply to spot margin trading.

The agency has opened a 60-day public comment period before advancing more detailed rules.