CFTC unveils two separate draft rules for the crypto market

The U.S. Commodity Futures Trading Commission (CFTC) has announced a package of crypto regulation proposals covering trades that involve leverage, margin or financing. The two draft rules, disclosed on Monday, are designed to create a broader federal framework for both the transactions themselves and the companies that intermediate them.

The first pillar of the proposal is Regulation CTX, while the second is Regulation CAM, which is intended for platforms. Under the CAM model, exchanges that host crypto asset trading would be assigned a new “crypto asset market” status.

The approach would bring investors looking to amplify positions through borrowing, as well as the platforms offering those products, under CFTC oversight. The agency is trying to narrow the uncertainty left after Congress failed to complete a comprehensive crypto law, using its current authority.

Why does the authority gap in spot markets remain?

The biggest limitation of the drafts is that the CFTC does not have direct authority to regulate spot market transactions that do not involve leverage or margin. As a result, conventional trades in which bitcoin changes hands around $85,787.74 and ether around $2,713.39 remain largely outside the framework.

The agency would still retain its power to step in against fraud and market manipulation in this area. But the main rules for day-to-day spot trading would continue to fall under state money-transmitter regulations rather than a new federal framework.

CFTC officials say the 60-day public comment period opened alongside the drafts will help clarify how much spot activity would remain outside federal supervision. The agency also believes companies looking to offer more complex products may move toward special platforms overseen by the CFTC.

Key takeaways for exchanges and investors

The new CAM status would be a narrower structure than a full DCM license. Even so, some major platforms, including Coinbase, Crypto.com and Bitnomial, are already registered as DCMs, while Kalshi and Polymarket are also among the entities operating within that structure.

  • For transactions under CTX, futures commission merchants would be expected to act as intermediaries.
  • This is intended to connect anti-money-laundering checks under the Bank Secrecy Act to the system.
  • Platforms that hold customer assets in omnibus accounts would face a proof-of-reserves requirement.
  • Products vulnerable to manipulation would not be allowed to list.
  • Transactions in which actual delivery is completed in less than 28 days could qualify for an exemption.

Following the U.S. Securities and Exchange Commission’s (SEC) recent moves in custody and tokenization, the CFTC’s proposal underscores Washington’s push to create rules without waiting for Congress to act. Still, unless the spot market authority gap is closed, the U.S. crypto market is expected to remain fragmented under multiple layers of oversight.