CFTC Chair Says Crypto Exchanges Can Choose State or Federal Oversight

CFTC Chairman Michael S. Selig said crypto exchanges should be able to choose state licenses or federal registration based on their services, as the agency considers rules for some financed retail trades.

“When you're crossing state lines, when you get into interstate commerce, that's when we want a uniform scheme across the country,” Selig said. He described federal registration as an option for exchanges and said only Congress could require every crypto exchange to register with the CFTC.

Most states have money-transmission licensing regimes that generally apply to crypto exchanges. New York allows covered virtual-currency businesses to apply for a BitLicense or seek a state banking charter with approval. The state-based systems vary, while Selig said activity across state lines calls for uniform standards.

The CFTC issued an advance notice Oct. 5 seeking comment on whether and how it should develop rules under the Commodity Exchange Act for certain retail crypto transactions involving margin, leverage or financing. The notice outlines Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM).

CAM would create a tailored category of designated contract market registration for exchanges handling those transactions. It sets apart routine spot trading, generally covered by state licensing, from retail transactions made with margin, leverage or financing.

The agency has previously outlined separate paths for crypto trading and sports contracts. The current notice does not establish final rules; comments will inform whether and how the CFTC proceeds with rulemaking. Comments are due Dec. 14, 2026.