How Does the CFTC Regulate Leverage and Margin Requirements for Crypto Futures?

The CFTC oversees the trading of crypto futures contracts offered on regulated US exchanges. It sets minimum margin requirements to ensure market stability and prevent excessive risk-taking.

While the exchanges themselves set the specific leverage limits, the CFTC monitors these practices. For retail transactions involving leveraged or margined crypto products that are not traded on a regulated exchange, the CFTC requires the product to be fully funded, effectively banning high leverage outside of its regulated framework.