CFTC Chair Outlines Path for Leveraged Crypto Spot Trades on U.S. Exchanges

CFTC Chair Michael Selig said a proposed crypto market framework could let U.S. exchanges offer leveraged spot trading to retail customers. Under Regulation Crypto Asset Transactions (Reg CTX), customers could pledge holdings such as Ether (ETH) and Solana (SOL) as collateral for spot trades. Exchanges would set margin requirements in consultation with the CFTC. Selig said those requirements would be comparable to those in crypto perpetual futures markets. He cited leverage of about 7 times as the upper end reached so far in those markets, but said that figure is not a fixed cap for spot trading. A companion plan, Regulation Crypto Asset Markets (Reg CAM), would give new exchanges offering only leveraged spot trading a federal registration option instead of requiring separate state licenses.

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