US Plans to Introduce Common Federal Rules for Crypto Exchanges

The U.S. Commodity Futures Trading Commission (CFTC) has presented new rules for crypto exchanges. The changes concern crypto exchanges that allow users to trade with borrowed funds.

Crypto exchanges will be able to join the new federal system voluntarily. If they choose this path, they will no longer need to obtain separate licenses in different states and will instead operate under the CFTC's unified rules.

The CFTC also plans to introduce a separate status for crypto exchanges. Platforms included in this system will be required to maintain sufficient reserves to cover users' funds and tighten controls against price manipulation. User transactions will be carried out through the participation of registered futures brokers.

It has not yet been determined how much users will be allowed to borrow. The new rules were prepared after discussion of the Clarity Act stalled in Congress. The bill was meant to establish common rules for the U.S. crypto market, but since the CFTC's initiative is not based on a separate law passed by Congress, it could be challenged in court. A future administration would also be able to change these rules.

Source: Investing.com