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Category: Business & Institutions

  • CFTC Starts Rule-Making for Leveraged Retail Crypto Trading

    CFTC Starts Rule-Making for Leveraged Retail Crypto Trading

    The top U.S. commodities watchdog wants public ideas on a national rulebook for some crypto trades made with borrowed money.

    Quick News Summary

    • The CFTC has started a rule-making process for some retail crypto trades.
    • It looks at crypto trades that use leverage, margin or financing.
    • The agency is thinking about two plans, called Regulation CTX and Regulation CAM.
    • This could give qualified crypto trading platforms a national path to follow the rules.
    • For now, the CFTC is only asking for public comments. No final rules are set.

    The U.S. Commodity Futures Trading Commission, or CFTC, has started a rule-making process. It wants a national set of rules for some retail crypto trades that use leverage, margin or financing. In simple words, these are trades made with borrowed money.

    On October 5, the CFTC put out an Advanced Notice of Proposed Rulemaking, or ANPRM. It asks the public to comment on a full set of rules for retail crypto trades under Section 2(c)(2)(D) of the Commodity Exchange Act.

    The agency calls these trades crypto asset transactions, or CTXs. It is studying possible rules for the trades and for the markets that could offer them.

    The two plans are named Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets. People shorten them to Regulation CTX and Regulation CAM. This is an early step. The CFTC wants to hear from the public before it decides what its real proposal will say.

    That point is important. The ANPRM does not mean a finished crypto rulebook is already in force. It simply lets market players and others share their thoughts on how the agency should build future rules.

    The CFTC is looking at areas where it says the Commodity Exchange Act already gives it power. These are mostly retail trades that use leverage, margin or financing.

    Reuters reported that the plan could give crypto exchanges a way into national oversight for these trades. Today they often deal with a mix of different state rules.

    One idea is a group of regulated platforms called crypto asset markets, or CAMs. The rules could cover fair markets, customer protection and how platforms handle customer assets.

    This effort is a big deal because bigger crypto market laws have struggled in Congress. CFTC Chairman Michael S. Selig said the agency believes it can use the laws it already has to write rules for the areas it controls.

    But the CFTC’s power has limits. Reports say it cannot force the whole U.S. spot crypto market onto CFTC platforms without new approval from Congress. So the plan stays focused on trades the agency believes it already has power over.

    That means a normal spot trade is different from a leveraged, margined or financed retail trade. This public request does not put every crypto purchase or sale under federal control.

    The agency is also thinking about how current regulated firms could join in. Existing designated contract markets may be able to offer these crypto trades under rules made for them. Other businesses might also be able to sign up, depending on the final plan.

    Reports say one idea is proof of reserves. This would apply when a platform keeps customer property in a shared pool. The CFTC is also asking how to treat actual delivery of crypto, including delivery to wallets that customers control themselves.

    The CFTC’s own announcement talked about clear rules and customer safety. Selig said the agency wants these crypto trades to sit under one national set of market rules.

    All this comes as U.S. regulators keep working on digital assets. They are using current securities and commodities laws along with newer crypto-focused efforts.

    For exchanges and other crypto firms, what it all means will depend on the rules that come next. Rules on sign-up, custody, reserves, middlemen and trading conduct could change how these leveraged retail products are sold in the United States.

    For now, the big news is that the process has begun. Final rules have not been adopted. The CFTC has placed its CTX and CAM ideas before the public and is collecting feedback before it picks its next steps.

    The final plan could look different from the ideas shared today. Until the process moves forward, the ANPRM is a request for input and a start to rule writing. It is not a finished set of crypto market rules.

    Disclaimer

    Aadi Crypto shares this information to teach and inform. It is not money, investing, trading or other expert advice. Do your own research. Think about your own situation before you make any money choice.

  • Cardano Adds CIP-0113 So Regulated Tokens Can Follow the Rules

    Cardano Adds CIP-0113 So Regulated Tokens Can Follow the Rules

    A new Cardano token standard lets issuers add ID checks, sanctions checks and transfer limits right into their tokens.

    Quick News Summary

    • Cardano’s new token standard, CIP-0113, is now live on mainnet.
    • Token issuers who use it can limit transfers, freeze tokens and take them back.
    • It is made for regulated assets like stablecoins, tokenized funds and bonds.
    • The rules can ask for ID checks, sanctions checks and other transfer conditions.
    • Only tokens that use CIP-0113 get these controls. ADA itself cannot be frozen.

    Cardano has a new token standard called CIP-0113. It helps issuers of regulated digital assets put rules right inside their Cardano tokens. The Cardano Foundation said the standard went live on mainnet around the TOKEN2049 event, based on news reports.

    CIP-0113 is mainly for assets whose issuers must follow laws or rules. Think stablecoins, tokenized funds and tokenized bonds. In the past, issuers leaned on outside systems to decide if a payment was allowed. Now Cardano’s ledger can enforce the rules itself.

    The rules can ask for ID checks. They can also block sanctioned people and limit who can send or receive a token. An issuer can even give certain approved parties the power to freeze or take back tokens. It all depends on how the issuer sets up the token.

    This does not mean every asset on Cardano is now under an issuer’s control. CIP-0113 is optional. It is only for tokens built to use it. ADA, Cardano’s own coin, does not become a token that can be frozen.

    This difference matters. These controls are meant for cases where a known issuer has to follow legal rules. A stablecoin company, a business that sells securities, or a firm that puts real-world assets on a blockchain may need ways to check IDs, follow sanctions and stop some transfers.

    With CIP-0113, those rules become part of how the token works. They no longer have to live only in an off-chain service. When a token is sent, created or burned, the ledger can check the rules.

    The standard is also built in pieces. There is one core framework. Extra parts can be added to hold the rules for each token. So issuers can pick the rules they need instead of using one rule set for every token.

    Here is another good thing. Cardano did not need a hard fork to add it. Tokens that use CIP-0113 are still normal Cardano assets. They still run on the network’s current system, called extended unspent transaction output, or eUTXO.

    Some Cardano tools already support the standard. News reports name the Eternl and GeroWallet wallets and the CardanoScan explorer. These tools help issuers and users get started. But they do not tell us how many CIP-0113 tokens will be made or used.

    The eUTXO design also brings a tricky problem. One Cardano output can hold several assets along with ADA. What if one asset in that output has a limit and the others do not? The standard has ways to handle this. Still, wallets and apps that touch limited assets may need to plan for it.

    This work did not start overnight. Reports say the building and testing began in 2023. The proposal was added to the Cardano Improvement Proposals repository in late September 2026.

    There is a bigger problem behind all this. Many crypto assets are built so anyone can send them to anyone. Regulated financial products often work differently. Issuers or middlemen may need to stop some transfers or follow a legal order.

    CIP-0113 gives those tools to each token. It does not put the same limits on all of Cardano.

    So users still need to look at each asset closely. A CIP-0113 token may have very different controls from ADA or from another Cardano token. People and apps that use these tokens should learn the issuer’s rules first.

    The launch does not show how many regulated firms will use the standard. What it does give is a plan. Issuers can now build Cardano tokens with rules that follow the law, and they can do it on the same Cardano ledger.

    Disclaimer

    Aadi Crypto shares this information to teach and inform. It is not money, investing, trading or other expert advice. Do your own research. Think about your own situation before you make any money choice.