Mike Selig Says CFTC Will Apply Established Margin Controls to Crypto
The U.S. Commodity Futures Trading Commission will apply established derivatives margin models and controls to the cryptocurrency market, according to comments from Mike Selig reported by Cointelegraph.
CFTC to Apply Existing Derivatives Controls
Selig said the CFTC will use established derivatives margin models and controls when applying its framework to crypto. The comments indicate that existing approaches to derivatives margin requirements and risk controls will form part of the regulatory treatment described by Selig.
The remarks focus specifically on margin models and controls used in derivatives markets. Rather than describing a separate leverage framework, Selig pointed to established models as the basis for how the CFTC will approach crypto.
No Race to the Bottom on Leverage
Selig also warned that there would be “no race to the bottom on leverage,” according to Cointelegraph. The statement directly addresses the level of leverage that may be permitted under the approach being described.
The comment places leverage alongside margin requirements and controls as a central consideration in the treatment of crypto derivatives. Selig's warning indicates that competition over leverage levels will not be the guiding principle of the framework outlined in his remarks.
Cointelegraph's report identifies the use of established derivatives margin models and controls as the key point of Selig's comments, while his warning on leverage provides the clearest statement on the approach to risk controls.
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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