The CFTC is proposing a new federal framework for leveraged retail cryptocurrency trading.

It would serve as an alternative to state-level registration for crypto exchanges. Unlike CLARITY, these provisions do not require crypto assets to be traded on platforms registered with the CFTC. In particular, agency Chairman Michael Selig said they do not have such authority without an act of Congress.

Selig also noted that they would take measures to prevent new fraudulent schemes like FTX. To this end, the CFTC and the SEC will develop appropriate rules for digital assets and crypto exchanges specifically.