CFTC Chair Interprets New Rules: Only Federally Regulated Crypto Trading Platforms May Offer Leverage Trading, But 100x Leverage Will Not Be Permitted
1 hours ago
CFTC Chairman Michael Selig said in a CNBC interview yesterday that under its proposed rules, only federally regulated cryptocurrency trading platforms will be allowed to offer leveraged trading. "States will only be permitted to provide money transmission services; the 100x leverage common outside the U.S. has never been allowed in the U.S., and this time will be no exception." Earlier reports noted that the U.S. Commodity Futures Trading Commission (CFTC) proposed two new rules on Monday, intending to establish a U.S. cryptocurrency regulatory framework based on its authority to regulate leverage and margin trading, to fill the regulatory uncertainty left by Congress’s failure to complete cryptocurrency legislation.
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