Two Federal Paths Target Trading and Crypto Custody
Retail crypto traders could gain tailored protections under a federal initiative launched Oct. 5. The U.S. Commodity Futures Trading Commission (CFTC), the regulator of financial contracts tied to underlying assets, opened consultation on a national framework for retail crypto commodity transactions. The effort runs alongside U.S. Securities and Exchange Commission (SEC) measures addressing asset safekeeping and blockchain-based stock trading.
CFTC Chairman Michael S. Selig linked the effort to President Donald Trump’s directive for federal crypto oversight. He said: “I want to underscore that this is a federal option for crypto asset exchanges.”
Preparations for crypto market rules under existing authority began before today’s notice. The proposed crypto asset market category would be a specialized registration option for exchanges offering covered retail trades involving leverage, margin, or financing. These arrangements increase exposure through borrowed funds or collateral. Selig clarified that requiring every crypto exchange to register federally would need congressional action.
