# CFTC Seeks Input on Who Sets Margin for Retail Crypto Trades By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/35306 Published: 2026-10-20T05:00:42.000Z Updated: 2026-10-20T05:00:42.000Z Section: Regulation > The agency is weighing existing clearing rules against more detailed requirements for collateral, liquidations and customer assets. The CFTC is asking who should set margin requirements for leveraged retail crypto trades on federally regulated exchanges, a decision that would shape rules for collateral, liquidations and customer assets. The agency released its advance notice on Oct. 5, and it appeared in the Federal Register on Oct. 13. The notice asks whether to retain an existing model in which a clearing organization generally sets margin requirements and determines eligible collateral, or have the CFTC set more detailed rules. Margin is collateral a customer must maintain to support a financed trade. The amount required and the assets accepted as collateral affect how a customer can open and maintain a position. The notice also seeks input on liquidation procedures and protections for customer assets. CFTC Chair Mike Selig described one possible approach involving a customer who uses crypto already held in an account as collateral to buy Bitcoin (BTC). A decline in Bitcoin’s price could trigger a margin call, requiring the customer to provide more collateral. Selig said “margin requirements would be set by the exchange in consultation with the CFTC.” That exchange-based description does not settle the question posed in the notice. The CFTC is still considering how margin and collateral decisions should be made under a federal framework. It is also seeking comments on what should happen when a position must be liquidated and how customer holdings should be safeguarded. The [proposed federal exchange framework]() would provide a registration path for venues offering covered retail crypto transactions with margin, leverage or financing. It would not require every spot crypto exchange to register with the CFTC. A mandate covering all such exchanges would require action by Congress. The agency is separately addressing prediction markets. On Oct. 9, it proposed including certain event contracts, including contracts tied to sports and politics, in the definition of swaps. In a separate interim final rule issued the same day, it excluded casino-style gambling products, including sportsbook wagers, from that definition. Comments on the retail crypto notice are due Dec. 14, 2026. ## Links in this article - [proposed federal exchange framework](https://www.tokenpost.com/news/regulation/31376)