CFTC Proposes Two Crypto Rules, but Spot Trading Still Falls Outside Its Reach
The U.S. Commodity Futures Trading Commission (CFTC) proposed two related rules on Monday, October 5, 2026, to set oversight for cryptocurrency activity that uses leverage, margin or borrowed money. The announcement comes as the agency tries to answer questions left open because Congress has not passed a crypto market structure law.
The CFTC, which regulates derivatives and futures markets, is pursuing two paths at once. One rule would cover the transactions themselves. The other would cover the companies that host the trading, by creating a new registration category for platforms.
What the two proposed rules would cover
- Regulation Crypto Asset Transactions (Regulation CTX): the proposed rule aimed at the trades themselves.
- Regulation Crypto Asset Markets (Regulation CAM): the proposed rule that would create a new type of regulated platform, called a crypto asset market (CAM).
- Trading that involves borrowing money to enlarge a position, using margin (money or collateral posted against a trade), or other financing would fall under CFTC oversight.
- The new crypto asset markets would be a narrow version of the existing designated contract markets, or DCMs, which are CFTC-regulated exchanges.
What Chairman Mike Selig said
The rules were announced through a CFTC press release and in remarks prepared for delivery at Fordham Law's annual Blockchain Regulatory Symposium.
"Today, the CFTC is doing its part to deliver clear rules of the road for crypto asset markets with its advanced notice of proposed rulemaking on Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM)," Chairman Mike Selig said in the prepared remarks, according to the agency's release.
He added that the rules "would codify a pathway for crypto asset exchanges to operate under uniform national oversight by the CFTC pursuant to the same statutory authorities that the prior administration instead utilized to regulate by enforcement." In other words, the agency says it is writing rules where earlier administrations relied on pursuing violations through court cases.
The spot-market gap
Even with two new rules, a large part of crypto trading stays outside this framework. Spot trading means buying and selling crypto directly, where the asset itself changes hands at the current market price, with no leverage or margin involved. That includes ordinary purchases of major tokens such as bitcoin and ether.
There is one exception. The CFTC can still investigate fraud and manipulation in spot markets even without broader authority over them. The agency also cannot override or replace state money-transmission rules, which continue to govern direct trading in many cases.
CFTC officials said firms that want to offer more complicated products, such as financing or margin, would do so through CFTC-regulated platforms. They also said it is unclear how large the remaining spot market will be, and that they expect to learn more from industry feedback.
What is confirmed and what is not
Confirmed by the agency's own announcement: the CFTC issued a pair of proposals covering leveraged, margined and financed crypto activity, created a proposed new exchange category, and opened a 60-day public comment period. CoinDesk also notes that many major crypto platforms are already registered as designated contract markets.
Still uncertain: how much of the spot market will stay outside federal rules. Agency officials said they will not know the scale until the comment period closes, and they suggested consumers may prefer to deal with federally regulated venues. That suggestion is an agency view, not a measured result.
Why this matters
The proposals would give companies that offer borrowing, margin or other financed crypto products a national rulebook to follow instead of relying mainly on enforcement actions. That affects anyone who uses money or collateral to trade crypto. It does not settle the rules for plain buying and selling, which remains split between state money-transmission rules and limited CFTC fraud and manipulation authority.
What happens next
The proposals are open for public comment for 60 days. After that period, the agency will consider industry feedback before deciding how to finalize the rules. The new SEC proposals referenced in the coverage are a separate track; the SEC is led by Paul Atkins, while the CFTC is led by Mike Selig.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.