New CFTC Crypto Rule Takes Lessons From the $8 Billion FTX Fraud

Key Summary

The Commodity Futures Trading Commission (CFTC) has opened public comment on new crypto trading rules, citing the $8 billion FTX fraud as a lesson. Chairman Michael Selig aims to establish regulations that prevent fraudulent schemes. The proposed rules cover retail crypto trades made with borrowed money or platform financing, and would require exchanges to keep customer money separate and limit conflicts of interest. Registered exchanges could offer leverage and margin, but must also monitor for manipulation. The CFTC is seeking public feedback, with comments due 60 days after the notice appears in the Federal Register.