The CFTC has proposed a framework that would let US crypto exchanges opt into federal oversight under a new "crypto asset market" category. It targets platforms offering leveraged, margined, or financed retail activity. Basic spot exchanges may stay under state licenses.
The Commodity Futures Trading Commission (CFTC) has proposed a framework that could allow U.S. cryptocurrency exchanges to opt for federal oversight. The structure would create a registration category called the "crypto asset market," which would fall under the CFTC's jurisdiction.
The framework is designed to cover exchanges offering leveraged, margined, or financed retail activity. Those exchanges would face requirements including market surveillance, anti-manipulation, customer protection, and proof-of-reserves controls.
Basic spot exchanges, however, may continue to operate primarily under state money-transmitter licenses. The reason is that the CFTC currently lacks the authority to enforce universal federal registration.
What to watch next
Observers will be watching how major exchanges such as Coinbase and Binance respond to the proposal. Any sign of support or resistance from key players could affect market sentiment.
The response from lawmakers and regulators will also matter, including any steps toward formal adoption or amendments.
Source: Crypto Briefing
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