How the CFTC is building a federal home for crypto leverage

00:00 Speaker A

The CFTC proposes new federal framework for leverage retail crypto trading. The agency floated a new crypto asset manage, excuse me, crypto asset market cam.

00:11 Speaker A

Cam Newton. Cam. Exchange category, but said it can't require crypto to trade on CFTC platforms without Congress. So this is where that push and pull of the clarity act comes in. When the clarity act failed, the SEC moved immediately, the Friday after we saw that the CFTC and their commission of one, Mr. Mike Celing, the commissioner, who's the only CFTC commissioner right now,

00:41 Speaker A

that he submitted some rulemaking proposals to the White House, but we did not know what they are. Presumably this is what they are. And the CFTC now is developing these rules for leverage, margin and finance retail crypto transactions. This is where they know they are allowed to make rules and they're going to do everything they can within the letter of the law

01:05 Speaker A

to bring crypto exchanges and other platforms into a compliant manner to make life easier for them here. Like I said, exchanges offering leverage products could register under a new federal category called a crypto asset market. So here's what the proposed framework contemplates. Crypto specific token listing standards, which we don't have, market surveillance and anti-manipulation rules, proof of reserves for customer for pooled customer assets.