CFTC’s Crypto Rulebook: A Path to Clarity, With a Protection Gap

The CFTC has proposed a federal framework for leveraged retail crypto trading, including a new registration category for platforms and requirements addressing market manipulation, proof of reserves and trade intermediation. For exchanges, a federal route could mean less reliance on a patchwork of state licensing; for traders, clearer rules may be better than guessing which regulator is in charge.

The Bear Case

The proposal does not cover every corner of crypto:...