CFTC Moves To Allow Crypto Spot On Futures Exchanges
A New Step In The “Crypto Sprint” Initiative
The U.S. Commodity Futures Trading Commission (CFTC) has launched a major initiative to allow trading of crypto spot asset contracts on registered futures exchanges (Designated Contract Markets – DCMs). This move is part of the CFTC’s “crypto sprint” campaign, aimed at implementing 18 key recommendations from the Trump-era Digital Asset Markets Working Group. The proposals focus on improving regulations and establishing a clear legal framework for digital assets.
U.S. Commodity Futures Trading Commission (CFTC)
Leadership Remarks From The CFTC
Acting Chair Caroline Pham stated that the CFTC is “moving at maximum speed” to advance digital asset trading at the federal level, working closely with the U.S. Securities and Exchange Commission (SEC). She emphasized that this is a straightforward and clear solution that can be implemented immediately. Under the proposal, crypto spot contracts would be listed similarly to futures contracts but would reflect real-time market prices, traded on licensed exchanges to support transactions involving leverage, margin, or financing.
Ms. Caroline Pham
Jurisdiction And New Regulatory Framework
Currently, the CFTC’s primary authority lies in overseeing derivatives markets, with direct involvement in commodities such as cryptocurrencies only in cases of fraud or market manipulation. The new initiative would expand the agency’s oversight to more complex spot transactions. The CFTC is seeking public comment on applying Section 2(c)(2)(D) of the Commodity Exchange Act and Part 40 regulations of its rulebook — provisions that require leveraged commodity transactions for retail investors to be executed on registered DCMs. The public comment period will close on August 18, 2025.
Ties To The SEC And DeFi Regulation
The CFTC is also requesting feedback on whether SEC securities laws could apply to certain non-security assets that might still be considered investment contracts. Previous reports recommended that the CFTC define clear criteria for when a cryptocurrency qualifies as a commodity, provide registration guidance for decentralized finance (DeFi) projects, and update rules to accommodate blockchain-based derivatives products.
Leadership Challenges At The CFTC
Despite pushing forward with this significant policy move, the CFTC currently operates with only two commissioners — Caroline Pham and Kristin N. Johnson — following several high-profile departures, including former Chair Rostin Behnam and commissioners Summer Mersinger and Christy Goldsmith Romero. President Donald Trump’s nominee for the permanent Chair position, Brian Quintenz, remains in limbo as the Senate has postponed its confirmation vote.