CFTC Approves Spot Crypto Trading on Federally Regulated US Futures Exchanges
The Commodity Futures Trading Commission (CFTC) announced that spot crypto trading will now occur on federally regulated US futures exchanges for the first time. This was revealed by Acting CFTC Chair Caroline Pham, who has been in the role since January and is expected to leave following Senate confirmation of Michael Selig.
The CFTC will oversee spot trading for assets it classifies as commodities, such as Bitcoin and Ethereum, on registered exchanges, including leveraged retail crypto trades. This move responds to years of industry pressure for clearer regulatory rules. Previously, leveraged retail commodity trades mandated physical delivery within 28 days on registered exchanges, which had driven much trading activity offshore.
Under the new framework, spot and leveraged trading will be conducted on Designated Contract Markets. Major platforms including CME Group, Cboe, ICE Futures, Coinbase Derivatives, Kalshi, and Polymarket U.S. are in discussions to launch products in line with the updated rules. Approval for leveraged trading is expected next month.
The initiative aligns with guidance from the President’s Working Group on Digital Asset Markets and the Crypto Sprint initiative, which focuses on tokenized collateral, stablecoins in derivatives, and blockchain-based clearing and settlement. This approach also follows earlier joint CFTC-SEC guidance that helped ease jurisdictional tensions between the agencies.
Congress is advancing legislation to place cryptocurrency spot markets under CFTC supervision. Currently, the CFTC staff count stands at about 500, considerably smaller than the SEC’s approximately 4,000 employees.
