The CFTC has proposed a voluntary federal registration route for exchanges that offer leveraged crypto trading, and it did so without Congress. Renato Mariotti calls the approach a clever reading of existing law but warns courts may not accept it after Loper Bright.
The Commodity Futures Trading Commission has a new plan for policing leveraged crypto trading that does not need Congress to sign off. Whether it survives a judge is a separate question.
Renato Mariotti says the strategy is a clever interpretation of the agency's 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.
Two frameworks for crypto venues
On October 5, 2026, the CFTC published an advance notice of proposed rulemaking, or ANPRM. The notice introduces Regulation CTX and Regulation CAM. CTX targets leveraged and margined retail crypto asset transactions, while CAM creates a new subcategory 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.
The proposal sets no specific caps on leverage. Instead, CFTC staff would review any leveraged offering before it reaches customers. Plain spot trading with no leverage stays under state money-transmitter licenses. Comments on the ANPRM are expected within 60 days of its publication.
Why the agency acted 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. The vote failed 49-50.
Less than three weeks later, the CFTC rolled out its own framework. Chairman Michael Selig has championed the rulemaking, which relies 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 risk
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 does not call the CFTC's reasoning sloppy. His concern is that clever may not be enough when courts are no longer inclined to defer.
If the rules are finalized and challenged in court, the CFTC's ability to enforce them could be tied up for some time. The voluntary structure means the framework's reach depends on how many exchanges decide federal registration is worth the paperwork.
Source: Crypto Briefing
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