CFTC Launches Consultation on Spot Crypto Contracts Under Trump Crypto Policy

The U.S. Commodity Futures Trading Commission (CFTC) has launched a public consultation aimed at regulating spot crypto asset contracts, as part of a broader regulatory push under the Trump administration’s 18-point crypto policy recommendations. The initiative seeks to bring clarity to the legal framework governing spot crypto trading, particularly for leveraged retail transactions on federally registered exchanges [1].

Under the proposed framework, spot crypto contracts would be structured in a manner similar to futures-style listed contracts, aligning them with existing regulatory structures under the Commodity Exchange Act. This approach would enhance oversight and investor protection, especially for leveraged trades, which currently operate in a less transparent environment [1].

The move aligns with the CFTC’s ongoing “crypto sprint,” an accelerated effort to implement reforms in the digital asset market. Acting Chair Caroline Pham has emphasized the importance of federal coordination, particularly with the SEC’s Project Crypto, to establish immediate solutions for digital asset trading while ensuring consistent regulatory oversight [1].

The Working Group on Digital Asset Markets has issued 18 recommendations, urging the CFTC to refine commodity classifications for cryptocurrencies, improve registration requirements for DeFi participants, and provide guidance for regulated entities engaging with crypto markets. These recommendations also include adapting rules for blockchain-based derivatives to support innovation without compromising market integrity [1].

The CFTC’s current leadership structure includes Acting Chair Pham and Kristin N. Johnson, with three commissioner positions remaining vacant. Delays in confirming nominees, including Brian Quintenz for the permanent chair position, have introduced uncertainty into the agency’s future direction. Despite these challenges, the CFTC continues to advance its regulatory agenda through initiatives such as the crypto sprint [1].

Public feedback on the proposed regulation is open until August 18, 2025. The outcome of this consultation could lead to the establishment of a formal regulatory framework for spot crypto contracts, marking a significant development in the oversight of digital asset markets [1].

By integrating spot crypto trading into existing commodity transaction laws, the CFTC aims to address gaps in regulatory clarity and ensure that retail investors are protected in leveraged trading environments. The coordination with the SEC and adherence to the Working Group’s recommendations are expected to reduce regulatory fragmentation and strengthen investor confidence [1].

Source: [1] CFTC Seeks Feedback on Potential Spot Bitcoin Trading Regulation Amid Policy Review

https://en.coinotag.com/cftc-seeks-feedback-on-potential-spot-bitcoin-trading-regulation-amid-policy-review/