The Commodity Futures Trading Commission announced Monday that it will open two draft rules to public comment for a 60-day period, aiming to clarify federal oversight of crypto markets that rely on borrowed capital. The proposals target leveraged, margined or financed crypto transactions by creating a new class of exchange known as crypto asset markets. Such platforms would operate under the same statutory framework that the agency previously used to regulate designated contract markets.

Chairman Mike Selig said the agency is seeking uniform national standards for crypto exchanges that offer products dependent on leverage or margin. The rules would require these venues to meet the same safeguards applied to other regulated trading venues, including prohibitions on listing assets susceptible to manipulation and requirements for proof‑of‑reserves when customer funds are held in omnibus accounts.

The agency also outlined that futures commission merchants would act as intermediaries for any crypto activity falling under the new definitions, thereby extending Bank Secrecy Act anti‑money‑laundering safeguards to the sector. An exemption for "actual delivery" trades lasting less than 28 days would allow direct asset swaps to bypass the regulatory net, though the CFTC would retain authority to pursue fraud and manipulation in those markets.

The move comes as Congress has yet to enact a comprehensive crypto market‑structure bill. Lawmakers abandoned the Digital Asset Market Clarity Act earlier this month, leaving a vacuum that both the CFTC and the Securities and Exchange Commission have sought to fill through parallel rulemaking. The SEC had previously issued its own guidance on custody and tokenization, while the CFTC’s earlier token taxonomy defined how assets would be split between the two agencies.

Industry groups that already hold designated contract market status — such as Coinbase, Crypto.com, Bitnomial, Kalshi and Polymarket — are expected to comment on the proposals. The CFTC noted that firms wishing to offer more complex derivatives would likely need to operate through the newly defined crypto asset markets, while spot‑market trading, which involves the direct exchange of assets at current prices, remains outside the scope of the new rules.

Selig indicated that the agency is also exploring regulatory options for software developers who create crypto‑related tools without directly soliciting customers or holding funds. He argued that such creators should not be forced to register as introducing brokers solely because they distribute code.

The proposals reflect an effort to bring greater certainty to a sector that has operated largely under enforcement‑driven oversight since the 2010 Dodd‑Frank Act amendments. Whether the rules will close the existing regulatory gap for spot markets or prompt further legislative action remains uncertain.