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The Commodity Futures Trading Commission has a new plan for policing leveraged crypto trading. It does not need Congress to sign off. Whether it survives a judge is a separate question.
Renato Mariotti says the CFTC’s strategy is a clever interpretation of its existing powers. He also warns that courts may refuse to accept it in a post-Loper Bright world, where agencies can no longer count on judges giving them the benefit of the doubt.
What the CFTC actually proposed
On October 5, 2026, the CFTC published an advance notice of proposed rulemaking, or ANPRM. Think of it as the agency announcing a policy and asking the public to weigh in before writing the final rules.
The notice introduces two frameworks: Regulation CTX and Regulation CAM. CTX takes aim at leveraged and margined retail crypto asset transactions. CAM creates a new subcategory specifically for crypto asset markets.
Together, they offer exchanges a voluntary route to federal registration.
Venues registered under CAM would have to meet proof-of-reserves obligations and maintain anti-manipulation controls.
On leverage, the proposal does not set specific caps. Instead, any leveraged offering would go through review by CFTC staff before it reaches customers.
The scope has a clear boundary. Plain spot trading with no leverage stays where it is today, under state money-transmitter licenses.
Comments on the ANPRM are expected within 60 days of its publication.
Why the CFTC went it alone
On September 15, 2026, the Senate held a procedural vote on the CLARITY Act, which was designed to build a detailed oversight framework for crypto markets. It failed 49-50.
Less than three weeks later, the CFTC rolled out its own framework. CFTC Chairman Michael Selig has championed the rulemaking, relying on authority the agency already holds under the Commodity Exchange Act.
The CFTC has also acknowledged that its powers have limits without Congressional action.
The Loper Bright problem
In 2024, the Supreme Court ruled in Loper Bright Enterprises v. Raimondo, and the decision reduced the deference courts give to agency interpretations of the laws they enforce.
Mariotti’s point is not that the CFTC’s reasoning is sloppy. He credits it as clever. His concern is that clever may not be enough when courts are no longer inclined to defer.
What this means for exchanges and traders
For platforms that already offer leveraged crypto products, the proposal creates a federal registration pathway. Compliance requires proof-of-reserves reporting and anti-manipulation systems.
The voluntary structure means the framework’s reach depends on how many exchanges decide the federal stamp is worth the paperwork.
If the rules are finalized and challenged in court, the CFTC’s ability to enforce them could be tied up for some time. An exchange that spends heavily to comply with rules later struck down would have paid for a framework that no longer exists.
The next markers to watch are the 60-day comment window, how major exchanges respond, and whether anyone signals plans to challenge the framework.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.
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