Caroline Pham, the Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), has officially confirmed plans to initiate leveraged spot crypto trading on regulated U.S. exchanges, with implementation potentially starting as early as next month. This strategic regulatory move, which Pham has been advocating since 2022, leverages existing authority under the Commodity Exchange Act to require leveraged or margined commodity trades, including cryptocurrencies, to occur on designated contract markets (DCMs).
Discussions involve major exchanges such as CME Group, Cboe Futures Exchange, ICE Futures, Coinbase Derivatives, Kalshi, and Polymarket US, focusing on spot trading of digital assets like Bitcoin (BTC) and Ethereum (ETH) under CFTC oversight. Pham emphasized the initiative's goal to shift trading activity from offshore exchanges to domestic platforms, enhancing regulatory clarity, investor protection, and institutional access. She stated, "There is a clear and simple solution the CFTC can implement now... Together, we will make America the crypto capital of the world."
The development follows a September joint statement from the SEC and CFTC clarifying that registered exchanges can list spot commodity products, including crypto assets. This could lead to increased trading volumes, improved liquidity, and greater price discovery, mirroring the impact of the CFTC's 2017 approval of Bitcoin futures. Industry leaders, such as Two Prime Digital Assets CEO Alexander Blume, view this as a pivotal step toward mainstream adoption, noting it opens doors for institutional investors who have avoided offshore venues due to oversight concerns.
However, regulatory turnover poses potential delays, as Pham operates as the CFTC's sole commissioner amid vacancies delayed by the federal government shutdown. President Trump has nominated Mike Selig to replace her, but confirmation is pending. Pham is expected to join MoonPay after her term, though neither she nor the agency has commented on this report. Stakeholder feedback is currently being reviewed to ensure smooth implementation.
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