The CFTC published a notice of proposed rulemaking on August 21, 2026 that would add registration exemptions for commodity pool operators (CPOs) and commodity trading advisors (CTAs), and would double the Small Pool Exemption capital threshold from $400,000 to $800,000. Comments must be received by October 5, 2026. The proposal is aimed at SEC-registered investment advisers and small pools, not at futures prop firms.
What the CFTC proposed
The notice carries RIN 3038-AF78 and would amend 17 CFR Part 4, the part of the CFTC’s rules covering CPOs and CTAs. A CPO operates a pooled investment vehicle that trades futures; a CTA advises others on futures trading. Both normally have to register with the CFTC unless an exemption applies.
The proposal would add an exemption from CPO registration for SEC-registered investment advisers whose pools are limited to certain sophisticated investors, plus a related CTA exemption. It would also raise the gross capital contributions limit in the Small Pool Exemption. The CFTC cites Chairman Selig’s “minimum effective dose” approach to regulation.
| Small Pool Exemption | Now | Proposed |
|---|---|---|
| Gross capital contributions | $400,000 | $800,000 |
| Participants per pool | 15 | 15, unchanged |
Who it affects
The people who would gain from the proposal are investment advisers already registered with the SEC who also run pools trading futures, and operators of small pools sitting near the old $400,000 ceiling. Under the proposal, a pool can hold up to $800,000 in gross capital contributions and still use the Small Pool Exemption, while the 15-participant limit stays where it is.
What it does not change for prop traders
The subject of the notice is who has to register as a CPO or CTA. It proposes exemptions for SEC-registered advisers and small pools, and it is not a consultation on funded-trader programs. A futures prop firm evaluation remains what it was before the notice: a paid service on a simulated account, governed by the firm’s own rules. Nothing in the proposal changes drawdown rules, daily loss limits, consistency rules or payout terms at any firm.
What to check
The comment deadline is the date that matters now. Comments must be received by October 5, 2026, and the Federal Register document carries the instructions for filing them. A proposed rule is a proposal; the text can change before any final rule, and nothing in it is in force today.
