US Regulator CFTC Proposes New Crypto Rules, But Gap Remains

A major U.S. financial watchdog is stepping up to create clearer rules for the crypto world — but a big piece of the puzzle is still missing.

The Commodity Futures Trading Commission (CFTC) — a U.S. government agency that oversees certain financial markets, especially complex trades — has proposed two new sets of crypto rules. This follows earlier moves by the SEC (Securities and Exchange Commission), the agency that mainly regulates stocks and investments.

What the new rules cover:

• Crypto trades that use leverage (borrowing money to make bigger bets than you could afford on your own)
• Trades that use margin (putting down only part of the money and borrowing the rest)
• A brand-new type of registered exchange called a Crypto Asset Market (CAM)

The idea is to give crypto trading platforms a clear, nationwide set of rules to follow, instead of the confusing patchwork that exists today. CFTC Chairman Mike Selig said the agency wants to deliver "clear rules of the road" for crypto.

The big gap that remains: The CFTC does NOT have the power to regulate spot markets — this is simple, direct buying and selling of crypto at today's prices, with no borrowing involved. That covers the everyday purchase of major coins like Bitcoin and Ethereum. The one exception: the CFTC can still crack down on fraud and manipulation in those markets.

This gap exists because Congress (U.S. lawmakers) failed to pass a crypto law — the Digital Asset Market Clarity Act — which stalled in the Senate last month. Without that law, regulators are doing what they can on their own.

Key facts to know:

• The rules will be open for a 60-day public comment period
• Major platforms like Coinbase and Crypto.com are already registered with the CFTC
• Both the CFTC and SEC currently have only Republican leaders, as President Trump hasn't named new members

Bottom line: Regulators are building clearer crypto rules piece by piece, but until Congress acts, everyday crypto buying and selling stays in a regulatory grey zone.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/policy/2026/10/05/u-s-cftc-joins-sec-in-proposing-crypto-regulations-though-spot-market-gap-lingers