CFTC to Enable Spot Crypto Trading on Registered Exchanges

The U.S. Commodity Futures Trading Commission (CFTC) has announced a new initiative to enable spot trading of crypto assets on registered futures exchanges, marking a significant development in the regulatory landscape for digital assets in the U.S. [1]. Acting Chairman Caroline D. Pham revealed the move on Monday, positioning it as the first step in the CFTC’s broader strategy—referred to as the “crypto sprint”—aimed at implementing recommendations from the President’s Working Group on Digital Asset Markets report [1].

According to Pham, the initiative aligns with the administration’s vision to enhance the U.S. leadership in digital assets and is being carried out in coordination with the Securities and Exchange Commission’s (SEC) Project Crypto [1]. The CFTC has emphasized that it already has the legal authority to regulate such trading, referencing the Commodity Exchange Act, which mandates that leveraged, margined, or financed retail commodity trading occur on a designated contract market (DCM) [1].

The CFTC is now seeking public input on how to implement spot crypto trading under existing regulatory frameworks, including Section 2(c)(2)(D) of the Commodity Exchange Act, Part 40 of CFTC regulations, and potential interactions with securities laws [1]. Pham, who has advocated for this approach since 2022, reiterated her commitment to making the U.S. the global leader in crypto markets [1].

Public feedback is open until August 18, with all comments to be published on the CFTC website [1]. The initiative signals a proactive regulatory shift toward integrating crypto into traditional financial infrastructure, potentially increasing institutional access and investor confidence in the market.

Sources:

[1] CFTC launches initiative for spot crypto trading on registered exchanges (https://www.investing.com/news/cryptocurrency-news/cftc-launches-initiative-for-spot-crypto-trading-on-registered-exchanges-93CH-4168932)