CFTC Chairman Says Leveraged Crypto Trading Would Require Federal Regulation

CFTC Chairman Michael Selig says only federally regulated crypto exchanges would be able to offer leverage under the agency proposed framework.
Selig said state-level authorization covers money transmission activity rather than leveraged trading.
He also emphasized that the extreme leverage available on some offshore platforms, including levels around 100x, has not been permitted in US regulated markets.
The proposal points toward a clearer divide between federally supervised leveraged crypto markets and state-regulated spot activity.