CFTC Proposes Federal Framework for Crypto Brokers, Opt-In Oversight

The CFTC proposed a federal framework allowing crypto brokers offering leveraged digital asset trading to opt into federal oversight, addressing regulatory fragmentation after Congress failed to pass the Clarity Act. The rule leverages specific CFTC authority to cover parts of the spot market, potentially shifting the regulatory landscape for crypto trading. The proposal's impact depends on industry uptake and final rulemaking, with uncertainty over how it interacts with SEC jurisdiction.