The Commodity Futures Trading Commission has set out the most detailed plan yet for how it would supervise leveraged retail crypto trading in the United States. On 5 October, the CFTC issued an advance notice of proposed rulemaking covering two proposed regulations: Regulation Crypto Asset Transactions, known as CTX, and Regulation Crypto Asset Markets, known as CAM, according to a summary by law firm Lowenstein Sandler. The agency said it intends to create fit-for-purpose rules for this market.
The consultation is a first step rather than a final framework. Comments are due within 60 days of publication in the Federal Register, and CFTC Chair Michael Selig noted that compulsory registration would require congressional action, distinguishing the consultation from an adopted market-wide framework, according to crypto.news. But the shape of the proposals offers a clear view of where US crypto market structure could be heading.
What CTX and CAM would do
The consultation covers transactions under section 2(c)(2)(D) of the Commodity Exchange Act, which deals with leveraged, margined or financed retail transactions in commodities. In crypto, that covers situations where retail customers buy crypto assets on leverage or with financing, rather than paying in full and taking delivery.
Regulation CTX would set out the CFTC's preliminary view of when crypto asset transactions fall under section 2(c)(2)(D). That definition matters because it determines which trades must happen on regulated venues and which can continue as ordinary spot transactions outside the CFTC's direct oversight.
Regulation CAM would create a subcategory of designated contract market registration called a crypto asset market. Eligibility would be limited to exchanges that list only these covered crypto asset transactions. In effect, CAM would offer a dedicated, tailored route for crypto-focused venues to register with the CFTC, rather than requiring them to meet every requirement designed for traditional futures exchanges.
- Legal basis: Commodity Exchange Act section 2(c)(2)(D), leveraged, margined or financed retail transactions.
- Regulation CTX: when crypto transactions fall under that section.
- Regulation CAM: a crypto asset market subcategory of designated contract market registration.
- Eligibility for CAM: exchanges listing only covered crypto asset transactions.
- Comment period: 60 days after Federal Register publication.
The definition in CTX is likely to draw the most comments. Where the line falls between ordinary spot purchases and leveraged or financed transactions determines which crypto businesses need CFTC registration. Exchanges offering margin, lending-funded purchases or similar features will study the proposed definition closely.
How it fits with the SEC
The CFTC described its proposals as complementing the Securities and Exchange Commission's proposed Regulation Crypto Assets, released on 18 August 2026, which we covered in our report on the SEC proposal. Under the division of labour the agencies describe, the SEC would handle capital formation and the question of whether a crypto asset is offered as an investment contract, while the CFTC would regulate secondary-market trading of covered assets.
That split addresses one of the longest-running problems in US crypto regulation: uncertainty about which agency oversees which activity. Exchanges have faced overlapping claims of jurisdiction, and the lack of a clear registration path has pushed some activity offshore.
The coordination does not resolve everything. Congress has been debating market structure legislation that would assign jurisdiction more permanently, and the agencies' rules would need to align with whatever law emerges. Selig's comment that compulsory registration requires congressional action underlines that point.
CAM would give crypto exchanges something they have long asked for: a registration path designed for them, not borrowed from futures.
The coordination reflects a change in tone between the two agencies. For years, US crypto firms complained about regulation by enforcement and jurisdictional turf battles. Complementary proposals from both regulators, published within weeks of each other, suggest an effort to give the industry clearer and more consistent rules.
Who would be affected
Crypto exchanges that offer leveraged or margined products to US retail customers are the most directly affected. Under the proposals, they could register as a crypto asset market under CAM, giving them a regulated route to offer those products onshore.
Firms already moving into US derivatives will watch closely. Blockchain.com has applied to operate a designated contract market and a futures commission merchant, according to Finance Magnates, moving from reselling partner products to running its own regulated derivatives business. Kalshi recently won CFTC approval for a US500 perpetual future, which we covered in our report on Kalshi's perpetual, and Coinbase has expanded its CFTC-registered derivatives operations.
Retail traders would benefit from clearer protections if the framework is adopted. Regulated venues must meet requirements on customer funds, market surveillance, risk management and disclosures, which offer more safeguards than offshore platforms where many US traders have accessed leveraged crypto products.
Offshore exchanges are affected indirectly. Many have restricted US customers to avoid enforcement, while some US traders have used offshore platforms anyway. A credible onshore path for leveraged products could draw activity back to regulated US venues and give regulators a stronger argument against offshore access.
The broader US policy shift
The consultation is part of a wider change in US crypto policy in 2026. In the same week, FinCEN withdrew long-pending proposals on self-hosted wallets and crypto mixing, and the IRS issued guidance allowing eligible trusts to stake proof-of-stake assets, as we covered in our report on Washington's crypto week. Regulators are moving from enforcement-led policy toward defined frameworks.
Not everyone agrees with the direction. Community bankers have sued the OCC over crypto trust bank charters, and critics argue that regulated access to leveraged crypto could expose more retail investors to high-risk products. The comment period will bring those views into the record.
For the industry, the consultation is an opportunity to shape the final rules. Exchanges, market makers, investor advocates and academics are likely to submit detailed comments on definitions, eligibility and investor protections.
Market participants will also look for consistency with the CFTC's recent approvals. The agency has approved Kalshi's equity index perpetual and has overseen the growth of crypto futures on traditional exchanges such as CME. How CAM interacts with existing designated contract markets that already list crypto products is one of many questions the comments will test.
What it means for Asia
US rules influence global crypto markets because many large exchanges serve international users and seek access to US customers and capital. A clear CFTC registration path could encourage some offshore exchanges to establish regulated US entities, while making it harder to justify serving US users from abroad.
For Asian regulators, the CFTC's approach offers a reference point. Thailand, Singapore, Hong Kong and others have taken different paths to regulating crypto derivatives, from Thailand's plans for crypto futures on its derivatives exchange to Singapore's restrictions on retail leverage. The US move toward tailored registration may inform those debates.
For Asian traders, little changes immediately. US rules apply to US customers, and local rules continue to govern access to leveraged crypto products in each country.
What are CFTC Regulation CTX and CAM?
They are proposed CFTC rules from a 5 October 2026 consultation. CTX would define when leveraged, margined or financed retail crypto transactions fall under the CFTC's authority, and CAM would create a crypto asset market subcategory of exchange registration.
What is a crypto asset market under CAM?
It would be a subcategory of designated contract market registration, available only to exchanges that list only covered crypto asset transactions.
When are comments due on the CFTC consultation?
Comments are due within 60 days of the notice's publication in the Federal Register.
Does the CFTC consultation make registration mandatory?
No. CFTC Chair Michael Selig said compulsory registration would require congressional action, so the consultation is not an adopted market-wide framework.
How does this relate to the SEC?
The CFTC said its proposals complement the SEC's proposed Regulation Crypto Assets of 18 August 2026, with the SEC handling capital formation and investment contract status and the CFTC regulating secondary-market trading.
Which firms are affected?
Exchanges offering leveraged or margined crypto products to US retail customers, along with firms such as Blockchain.com, Kalshi and Coinbase that are building regulated US derivatives businesses.
Who leads the CFTC?
The CFTC is chaired by Michael Selig, who noted that compulsory registration of crypto markets would require congressional action.
What is a designated contract market?
A designated contract market is a CFTC-registered exchange that can list futures and options for trading, subject to core principles on market integrity, surveillance and customer protection.
Can US retail traders use leveraged crypto products today?
Leveraged crypto products for US retail customers must generally be offered through CFTC-registered venues and intermediaries. The proposed CAM framework would create a tailored registration category for such venues.
The CFTC's consultation on Regulations CTX and CAM sketches a tailored home for leveraged retail crypto trading in the United States, coordinated with the SEC and dependent on Congress for full force. For exchanges, it signals a realistic onshore registration path. For traders, it promises stronger protections if adopted. The next 60 days of comments will shape whether the final rules strike the right balance between access and protection.
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