CFTC Chair Michael Selig said only federally regulated cryptocurrency trading platforms would be allowed to offer leveraged trading under the agency’s proposed rules. He said state-level entities would be limited to money transmission services. Selig also said 100x leverage, which is common on some offshore platforms, has never been permitted in the United States and would not be allowed under the new approach either. His remarks follow the U.S. Commodity Futures Trading Commission’s earlier proposal of two new rules aimed at building a U.S. regulatory framework for crypto by relying on its authority over leveraged and margin trading. The comments outline a clear dividing line between federal oversight and state-level licensing in the agency’s proposed structure.
Odaily reported that CFTC Chair Michael Selig said yesterday that under the agency’s proposed rules, only federally regulated cryptocurrency trading platforms would be able to offer leveraged trading in the United States.
He said state-level entities would only be able to provide money transmission services. Selig added that 100x leverage, commonly seen outside the U.S., has never been allowed in the American market and would not be permitted this time either.
Earlier, the U.S. Commodity Futures Trading Commission proposed two new rules intended to build a U.S. crypto regulatory framework based on its authority over leveraged and margin trading.
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