--- title: "CFTC Proposes New Crypto Rules to Establish Federal Trading Framework" description: "The Commodity Futures Trading Commission has published an Advanced Notice of Proposed Rulemaking for Regulation CTX and Regulation CAM, seeking to create a purpose-built federal regime for crypto exchanges." url: https://basisdesk.news/analysis/cftc-proposes-regulation-ctx-cam-crypto-exchanges-auyucc published: 2026-10-06T14:02:38.849Z modified: 2026-10-06T14:02:38.849Z section: Regulation & Policy author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [BTC, ETH] tags: [cftc, sec, regulation-ctx, regulation-cam, leverage, exchanges] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # CFTC Proposes New Crypto Rules to Establish Federal Trading Framework The Commodity Futures Trading Commission has published an Advanced Notice of Proposed Rulemaking for Regulation CTX and Regulation CAM, seeking to create a purpose-built federal regime for crypto exchanges. ## At a glance - **What happened:** The CFTC published an Advanced Notice of Proposed Rulemaking on Oct. 5, 2026, to establish a federal regulatory framework for retail crypto transactions under Regulation CTX and Regulation CAM. - **Why it matters:** The framework offers a voluntary federal registration option that allows crypto exchanges to legally offer margined and leveraged trading to retail customers under a single national regime. - **Who is affected:** U.S. crypto exchanges, retail trading platforms, and retail investors trading digital assets like bitcoin and ether are affected. - **What's next:** The public has 60 days from the date of the ANPRM's publication in the Federal Register to submit written comments to the CFTC. - **Status:** proposed - **Primary source:** [WSJ Op-Ed | CFTC’s New Rules for Crypto](https://www.cftc.gov/PressRoom/SpeechesTestimony/seligstatement100526) — cftc.gov ## Key points - The CFTC published an Advanced Notice of Proposed Rulemaking on Oct. 5, 2026, to establish Regulation CTX and Regulation CAM for retail crypto transactions. - The proposed framework would allow registered crypto exchanges to offer retail customers margined, leveraged, or financed trading under a single federal scheme. - The rules follow a March 2026 joint SEC-CFTC interpretation clarifying that assets like bitcoin and ether are non-securities under CFTC authority. ## Editorial remark - **Context:** Following the Senate's failure to pass the Clarity Act in October 2026, the CFTC is utilizing its existing statutory authority under the Commodity Exchange Act to establish a federal regulatory framework, moving away from the previous administration's enforcement-led approach. - **Impact:** U.S. crypto exchanges and retail trading platforms are most affected. Registered platforms will gain a uniform national framework and the ability to offer leveraged retail trading, bypassing the fragmented state money-transmitter licensing system. - **Watch:** The immediate milestone is the close of the 60-day public comment period following the ANPRM's publication in the Federal Register, which will shape the subsequent formal proposed rules. The Commodity Futures Trading Commission (CFTC) has initiated a rulemaking process to establish a comprehensive federal regulatory framework for retail crypto asset transactions [2]. On Oct. 5, 2026, the agency published an Advanced Notice of Proposed Rulemaking (ANPRM) to seek public comment on its intent to build fit-for-purpose rules under Section 2(c)(2)(D) of the Commodity Exchange Act (CEA) [2]. The proposed framework, which comprises Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM), represents a shift away from the previous administration's "regulation-by-enforcement" approach [1]. It follows the U.S. Senate's failure to advance the Clarity Act in October 2026 [1]. At the time of writing, the broader crypto market remains stable, with $BTC trading at $86,274 and $ETH at $2,715. ## A Purpose-Built Option for Crypto Exchanges Under the proposed rules, the CFTC aims to codify a new subcategory of designated contract market (DCM) registration specifically tailored for crypto asset transactions, known as a "crypto asset market" [2]. Unlike legacy rules designed for traditional commodities, these regulations are intended to account for the unique infrastructure of digital assets [1]. According to an op-ed by CFTC Chairman Michael S. Selig, the proposed rules would not force crypto assets to trade exclusively on CFTC-registered platforms, as the agency lacks the congressional authority to mandate such a requirement [1]. Instead, the framework offers a voluntary, single federal market-regulatory scheme [1]. A key incentive for exchanges registering under this federal framework is the permission to allow retail customers to trade on a margined, leveraged, or financed basis [1]. This distinguishes registered platforms from ordinary spot-trading venues, placing them squarely within the CFTC's regulatory jurisdiction [1]. ## Shifting Away from State-Level Oversight Historically, many crypto platforms operated in the United States via subsidiaries holding state money-transmitter licenses [1]. Selig noted that state money-transmitter laws are non-uniform and designed primarily for payment-services providers rather than financial markets [1]. The CFTC argues that a uniform national regime is necessary to prevent the structural vulnerabilities that led to the collapses of state-licensed and offshore platforms like FTX, BlockFi, and Voyager Digital [1]. While most offshore and state-regulated FTX entities went bankrupt in 2022, Selig pointed out that customer property held by FTX's CFTC-registered subsidiary remained segregated and secure [1]. The new rules will focus on three primary regulatory objectives: * Preventing abusive and manipulative trading practices under a uniform national regime [2]. * Providing market participants with crypto-specific contextual information and industry best practices for compliance [2]. * Safeguarding customer funds and preventing conflicts of interest through stringent federal standards [1]. ## Regulatory Alignment and Next Steps The rulemaking process follows a joint interpretive release issued by the SEC and the CFTC on March 17, 2026, which took effect on March 23, 2026 [5]. That joint interpretation clarified that a broad swath of crypto assets, including bitcoin and ether, are non-securities falling under the CFTC's regulatory authority [1]. The ANPRM was submitted to the Office of Information and Regulatory Affairs (OIRA) on Sept. 17, 2026, under Regulation Identifier Number (RIN) 3038-AF80, where it remains pending review as a "Prerule" [4]. The CFTC has stated that the proposed rules are not classified as "economically significant" under Executive Order 12866, meaning they are not expected to have an annual economic impact of $100 million or more [4]. Market participants and the public have a 60-day window to submit written comments following the publication of the ANPRM in the Federal Register [2]. The Commission plans to use this feedback to shape future formal rulemakings regarding retail commodity transactions involving crypto assets [2]. ## FAQ **What are Regulation CTX and Regulation CAM?** They are proposed CFTC regulations aimed at establishing a purpose-built federal regulatory framework for retail crypto asset transactions and registering specialized crypto asset markets. **Will crypto exchanges be forced to register with the CFTC under these rules?** No. The CFTC does not have the statutory authority to mandate that all crypto assets trade on its registered platforms. The framework serves as a voluntary, single federal option for exchanges. **What are the benefits of registering under the proposed framework?** Registered exchanges would operate under a uniform national regulatory scheme and would be permitted to offer retail customers the ability to trade crypto assets on a margined, leveraged, or financed basis. ## Sources 1. [WSJ Op-Ed | CFTC’s New Rules for Crypto](https://www.cftc.gov/PressRoom/SpeechesTestimony/seligstatement100526) — cftc.gov, 2026-10-06 2. [CFTC Seeks Public Comment on Advanced Notice of Proposed Rulemaking Relating to Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets](https://www.cftc.gov/PressRoom/PressReleases/9307-26) — cftc.gov, 2026-10-05 3. [Industry Filings: Designated Contract Markets (DCM)](https://www.cftc.gov/IndustryOversight/IndustryFilings/TradingOrganizations) — cftc.gov, 2026-10-05 4. [Executive Order Submissions Under Review](https://www.reginfo.gov/public/do/eoReviewSearch?agencyCode=3038) — reginfo.gov, 2026-10-01 5. [Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets](https://www.sec.gov/rules-regulations/2026/03/s7-2026-09) — sec.gov, 2026-09-30 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai