100x leverage will not be allowed, CFTC Chair: Only federally regulated crypto trading platforms can offer leveraged trading

CFTC Chairman Michael Selig said yesterday that under the 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., nor will it be this time. Previously, the U.S. Commodity Futures Trading Commission proposed two new rules aimed at establishing a U.S. cryptocurrency regulatory framework based on its authority to oversee leveraged and margin trading.