Comment Text:
Subject: Feedback on Spot Crypto Trading Initiative
As a retail investor with a $5,000 portfolio in Bitcoin and Ethereum, I welcome the CFTC’s initiative to regulate spot crypto trading on DCMs. The current lack of oversight has exposed me to risks, such as the 2023 pump-and-dump schemes that cost investors like me an estimated $2.3 billion (per Chainalysis). I suggest the CFTC: Set clear leverage limits (e.g., 10:1 max) to protect retail traders from excessive losses, as seen in the 2022 Terra-Luna collapse.
Require real-time price transparency on DCMs to ensure fair pricing, addressing the 15% price discrepancy reported on unregulated platforms in 2024.
Provide educational resources for new investors to navigate this market safely.
I urge the CFTC to coordinate with the SEC to clarify which assets (e.g., non-security tokens like Bitcoin and XRP) fall under its jurisdiction, reducing confusion from overlapping regulations. Thank you for this opportunity to contribute.
