The CFTC’s Proposed Rules to Reshape US Crypto Markets | CFTC Chair Mike Selig

— CFTC Chair Mike Selig discussed two proposed rules—Regulation CTX (crypto asset transactions) and Regulation CAM (crypto asset markets)—designed to bring federal oversight to retail spot margin trading and establish a unified framework for crypto exchanges.

— The regulatory "trilogy" harmonizes SEC guidance on crypto asset classification (digital commodities, collectibles, tools, securities, stablecoins) with the CFTC's market structure proposals and the SEC's Reg Crypto for offerings.

— Current spot Bitcoin trading is regulated patchwork across 50 state money transmitter regimes, creating barriers like New York's BitLicense that prevent feature parity with offshore exchanges and traditional brokerages.

— Regulation CAM creates a federal alternative to state licensing, eliminating the need for exchanges to obtain licenses in all 50 states if they register with the CFTC and comply with margin/leverage requirements.

— Business line segregation is mandated: the CFTC framework requires separation of broker (customer-facing), exchange (order book), and clearinghouse (settlement), mirroring TradFi protections that were absent at FTX.

— Prediction markets remain in legal limbo with a Supreme Court split among circuits; the CFTC is defending its exclusive jurisdiction over derivatives contracts offered on registered exchanges.

— Exchanges can now move toward federal CFTC registration to offer retail spot margin and leverage onshore, matching offshore feature parity while operating under unified rules rather than juggling 50 state regimes.

— Traders should expect margin requirements consistent with current perpetuals markets (approximately 7x historical high) and mandatory fund segregation under federal oversight, providing better protections than state-licensed platforms that enabled past collapses.

— Comment on the proposed rulemaking during the Federal Register comment period to shape final rules; industry input is explicitly solicited by the CFTC across party lines to ensure rules are durable and bipartisan.