CFTC chair says only federally regulated crypto platforms could offer leverage in the U.S.

Commodity Futures Trading Commission Chair Michael Selig said in a CNBC interview yesterday that, under the agency’s proposed rules, only federally regulated cryptocurrency trading platforms would be allowed to offer leveraged trading in the United States. He added that state-level entities can provide only money transmission services, drawing a line between state oversight and the federal framework the agency is seeking to build. Selig also said the 100x leverage commonly seen outside the U.S. has never been permitted in the American market and would not be allowed under the proposal. His remarks came after the CFTC on Monday proposed two new rules designed to use its authority over leveraged and margined trading to create a U.S. regulatory framework for crypto. The effort is aimed at addressing the uncertainty left by Congress’ failure to pass crypto legislation.