CFTC Chairman interprets new regulations: Only federally regulated cryptocurrency trading platforms can offer leveraged trading, but 100x leverage will not be allowed

CFTC Chairman Michael Selig stated in an interview with CNBC yesterday that under its proposed rules, only federally regulated cryptocurrency trading platforms will be able to offer leveraged trading. "States can only provide money transmission services, and the 100x leverage commonly seen outside the United States has never been allowed in the U.S., and this time will be no exception."

Previously, the U.S. Commodity Futures Trading Commission (CFTC) proposed two new rules on Monday, aiming to establish a regulatory framework for U.S. cryptocurrency based on its authority to regulate leverage and margin trading, to fill the regulatory uncertainty left by Congress's failure to complete cryptocurrency legislation.