CFTC makes its biggest move yet to bring offshore crypto trading back to the US
The CFTC has opened an advance notice of proposed rulemaking for a federal framework allowing crypto platforms to offer retail leveraged or financed trading. Exchanges could opt in for access to those products, while accepting oversight covering market surveillance, conflicts, financial integrity, token manipulation risks, reserves and customer protections. Trades would be intermediated by registered futures commission merchants, bringing capital, segregation, disclosure and anti-money-laundering requirements. Ordinary spot exchanges could remain under state regimes, while derivatives venues stay under existing CFTC rules. The proposal may help US platforms compete with offshore exchanges, but compliance costs and limits on integrated exchange, brokerage and custody models could deter participation. Key details, including leverage limits and capital standards, remain unsettled; the CFTC is seeking public input, and legislation would provide a more durable framework.
