The CFTC proposed regulating leveraged crypto trades offered to retail customers and creating a new registration category for exchanges that provide them. The plan, open for 60 days of public comment, could expand federal oversight of crypto markets after broader market-structure legislation stalled, while spot-only exchanges could remain under state licensing regimes.

CFTC Chairman Michael Selig writes that the agency's proposed crypto rules can provide clear standards while supporting innovation and protecting market participants. "America doesn't need to choose between responsible innovation and protection from fraudulent practices, Selig writes, arguing that CFTC regulations can address market-structure gaps while Congress works toward a statutory framework.

A sharp sell-off in US government bonds has driven up borrowing costs for companies, particularly those with low credit ratings, with the risk premium for companies rated triple C or lower rising to its highest since 2022. Bank of America has cut its forecast for investment-grade debt issuance, and companies such as Paramount Skydance and McCormick are adjusting their borrowing strategies in response to the rising costs.

A rise in 30-year Treasury yields toward 6% could trigger a cheapest-to-deliver switch in long-bond futures, forcing asset managers to rebalance duration and potentially intensifying selling in the cash market. Asset managers cut nearly 100,000 ultra-long futures contracts in the week through Sept. 29, while Barclays estimates gross rebalancing needs at about $25 million per basis point in long-bond futures.

The Federal Reserve Bank of New York has been reviewing major banks' loans to private-credit firms, including their overall exposure, risk management and collateral quality. Loans to nonbank institutions have increased from $300 billion in 2016 to over $1.5 trillion according to Federal Deposit Insurance Corp. data. The review comes amid broader regulatory scrutiny of private markets as bank lending to nonbank financial institutions has grown sharply and policymakers examine valuation practices and potential vulnerabilities.