CFTC Chair Mike Selig Signals New Margin Controls for Crypto

CFTC Chair Mike Selig said the agency plans to apply established margin models and risk controls to crypto markets, bringing derivatives-market safeguards to the sector.

The measures are intended to support the integrity of derivatives markets. The CFTC will apply established margin models and risk controls to crypto markets.

Selig also rejected a race to the bottom on leverage rules, signaling that firms will not compete by offering increasingly loose standards. The approach would apply risk-management practices already used in derivatives markets to crypto-related activity.

The CFTC will apply established derivatives-market margin models and risk controls to crypto markets.