Joint CFTC/SEC rulemaking on crypto asset markets

On 13 October 2026, the Federal Register published a joint proposed rule from the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) titled "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets." The rulemaking operates under Commodity Exchange Act (CEA) Section 2(c)(2)(D), which covers "2(c)(2)(D) transactions"--agreements, contracts, or transactions in commodities entered into on a leveraged or margined basis, or financed by the offeror, with non-eligible contract participants.

The proposed regulation establishes a comprehensive framework for platforms offering leveraged crypto asset transactions to retail participants. It defines "crypto asset" as a digital representation of value that uses cryptographic techniques, distributed ledger technology, or similar mechanisms. The rule covers both "Regulation Crypto Asset Transactions" (individual transactions) and "Regulation Crypto Asset Markets" (trading platforms and intermediaries).

Registration, disclosure, and anti-fraud requirements

The proposal requires platforms offering 2(c)(2)(D) crypto asset transactions to register with the CFTC as designated contract markets (DCMs), swap execution facilities (SEFs), or a new category of "crypto asset transaction platforms." Platforms must implement:

  • Registration and membership standards for market participants
  • Pre-trade and post-trade transparency requirements including real-time dissemination of pricing and volume data
  • Anti-fraud and anti-manipulation provisions aligned with CEA Section 6(c)(1) and SEC Rule 10b-5
  • Customer protection rules including segregation of customer assets, risk disclosure, and suitability obligations
  • Capital and financial requirements for platform operators
  • System safeguards including capacity planning, business continuity, and cybersecurity standards

The SEC's parallel provisions address crypto assets that are securities, requiring compliance with Exchange Act registration, reporting, and broker-dealer requirements where applicable.

Scope limited to leveraged/margined retail transactions

The rulemaking specifically targets 2(c)(2)(D) transactions--those entered into on a leveraged or margined basis, or financed by the offeror, with persons who are not eligible contract participants (ECPs) or eligible commercial entities. Spot crypto asset transactions without leverage, and transactions with ECPs, remain outside this framework. The agencies note this approach is consistent with the historical treatment of leveraged retail commodity transactions under the CEA.

The proposal does not address: custody standards for non-leveraged crypto assets; tax treatment; AML/KYC beyond existing BSA requirements; or the classification of specific tokens as securities vs. commodities.

Platforms and market participants should prepare comment letters

The comment period runs 60 days from publication. Crypto trading platforms, DeFi protocols with leveraged products, stablecoin issuers with margin features, and retail-focused crypto brokers should assess whether their products fall within the 2(c)(2)(D) definition and prepare comments on registration feasibility, compliance costs, and the interaction with existing state money-transmitter licenses. The CFTC and SEC will hold a joint roundtable within 45 days.