What Is the CFTC’s Primary Concern regarding High Leverage in Crypto Derivatives?

The CFTC's primary concern is systemic risk and investor protection. High leverage amplifies market volatility, increasing the risk of sudden, massive liquidations that can destabilize the entire market.

It also poses a significant risk to retail investors, who may not fully understand the rapid and complete loss of capital that can occur. The CFTC aims to ensure market integrity and prevent excessive risk-taking that could spill over into the broader financial system.