CFTC chairman interprets new rules: Only federally regulated crypto trading platforms can provide leveraged trading, but 100 times leverage will not be allowed

The U.S. Commodity Futures Trading Commission (CFTC) proposed two new rules on Monday in an attempt to use its power to regulate leverage and margin trading to build a regulatory framework for U.S. cryptocurrencies. In an interview with CNBC on October 7, CFTC Chairman Michael Selig reiterated that according to these rules, only federally regulated cryptocurrency platforms can conduct leveraged transactions, states can only provide money transmission services, and 100 times leverage is always prohibited in the United States. This policy is no exception.