CFTC Advances New Regulatory Framework for Margined Crypto Trading Exchanges

CFTC Chairman Michael Selig confirmed the agency is advancing new regulations for cryptocurrency exchanges offering margin trading following an advance notice of proposed rulemaking published on October 5. The proposed framework introduces a new registration category targeting margin platforms, requiring proof-of-reserves audits, customer fund segregation, and strict token listing reviews without altering the commodity classification of tokens like Ethereum, Solana, and XRP. The move followed the Senate's September rejection of the Clarity Act. While the agency targets final implementation in 2027, TD Cowen warned finalization could stretch into early 2028, risking delays from the presidential election.