This Week in Crypto Law (October 11, 2026)

The opinion editorial below was written by Michael Handelsman for Kelman.Law.

This week brought meaningful developments on both sides of the Atlantic. The Commodity Futures Trading Commission began developing a federal framework for certain leveraged retail crypto transactions while proposing new boundaries between regulated event contracts and conventional gambling. In Europe, regulators addressed noncompliant stablecoins and advanced plans for direct supervision of significant crypto-asset service providers. A New York settlement with Celsius co-founder Alex Mashinsky also demonstrated the continuing importance of state enforcement.

CFTC Begins Developing a Federal Framework for Leveraged Crypto Trading

On October 5, the CFTC issued an advance notice of proposed rulemaking concerning retail crypto-asset transactions. The notice begins—but does not complete—a rulemaking process under Section 2(c)(2)(D) of the Commodity Exchange Act.

That provision governs certain commodity transactions offered to retail customers on a leveraged, margined, or financed basis. The agency is considering how it should apply the existing statutory framework to such crypto transactions, which the notice calls “CTXs.” Among other matters, the CFTC is requesting feedback on safeguards against abusive practices, requirements tailored to crypto markets and the possible creation of a “crypto asset market” subcategory within designated contract market registration.