TL;DR
- The CFTC opened a public consultation on a regulatory framework for retail crypto transactions involving margin, leverage, or financing.
- Better Markets argues that the CFTC lacks an investor protection mandate and that its authority was created to regulate precious metals, not crypto assets.
- Benjamin Schiffrin criticized the agency’s chairman, Mike Selig, for promoting the goal of turning the U.S. into the crypto capital without explaining the benefits of that objective.
The CFTC opened a public consultation to develop a regulatory framework for retail crypto transactions involving margin, leverage, or financing under its existing authority. The nonprofit organization Better Markets responded with a direct criticism: the U.S. derivatives regulator is not the appropriate agency to oversee this segment of the market.
Benjamin Schiffrin, director of securities policy at Better Markets, argued that the CFTC lacks an explicit retail investor protection mandate, unlike the SEC. “Its mission is to regulate commodity and derivatives markets, which have historically been dominated by large institutions with very little retail participation,” Schiffrin argued.
Today, the CFTC indicated that it wants to adopt new rules to legitimize crypto assets and give the crypto industry what it has long desired. See the link below to learn more about what that means for the future of the industry and investor protection. pic.twitter.com/Av7TnboPfV
— Better Markets (@BetterMarkets) October 5, 2026
The CFTC, the Wrong Regulator for Retail Investors
Schiffrin added that the CFTC’s rules do not include the protections that the SEC applies when investors trade securities, making the agency an inappropriate choice for regulating crypto transactions involving retail customers.
He also questioned the legal basis invoked by the agency: the statutory authority cited was originally created to combat fraud in leveraged trading of precious metals, not to assume primary regulatory oversight of the retail crypto market.
Additionally, Better Markets warned that the framework under consideration could allow affiliations between market participants similar to those that, according to the organization, contributed to the collapse of FTX.
The “Crypto Capital” Goal Under Scrutiny
Schiffrin also took aim at statements by CFTC Chairman Mike Selig, who expressed the goal of turning the United States into the crypto capital of the world. “He does not explain why that would be a positive thing,” Schiffrin responded, adding that cryptocurrencies, after 18 years of development, still lack real-world use cases beyond speculation or illicit activities.
Nate Geraci, president of NovaDius Wealth Management, pushed back against that characterization and argued that the industry simply wants clear rules. If Congress does not provide them — he argued — the CFTC and SEC will have to do so. Both agencies are currently advancing crypto-related measures under existing legislation after the CLARITY Act stalled in Congress.
