CFTC Pushes Broad Federal Crypto Registration to Prevent Another FTX Collapse

CFTC Chair Mike Selig is pushing a new federal registration category called a "crypto asset market" for exchanges offering leveraged trades to retail customers. The agency is interpreting "leverage" broadly, potentially bringing even fully paid trades under its oversight unless customers take physical delivery of the digital assets. The regulatory push comes despite lawmakers blocking the long-awaited Clarity Act last month. Former FTX founder Sam Bankman-Fried is currently serving a 25-year prison sentence after $8B in customer funds was stolen in 2022. “Four years ago, we saw the collapse of Sam Bankman-Fried’s FTX, where he stole over $8 billion in customer funds. That can’t happen under our regime.” — Mike Selig