CFTC Proposes Spot Crypto Trading on Futures Exchanges to Boost Market Unity

The U.S. Commodity Futures Trading Commission (CFTC) is advancing regulatory measures to allow spot trading of cryptocurrencies such as Bitcoin on registered futures exchanges, also known as Designated Contract Markets (DCMs). Acting Chair Caroline Pham announced the initiative, which marks the first step in implementing the President’s Working Group on Digital Asset Markets’ recommendations. The move is part of the CFTC’s “Crypto Sprint” initiative, aimed at clarifying regulatory oversight, expanding control over crypto commodities, and strengthening collaboration with the Securities and Exchange Commission (SEC) to foster responsible innovation [1].

Currently, the SEC oversees spot trading of cryptocurrencies, while the CFTC regulates futures derivatives. The CFTC’s proposal would enable futures exchanges to list spot crypto contracts under the Commodity Exchange Act, bridging the gap between the two regulatory frameworks. A spot crypto contract would function similarly to a futures-style listed contract, mirroring spot prices and being traded on a CFTC-registered DCM. This approach allows the CFTC to expand oversight without directly regulating commodities in the traditional sense, except in cases of fraud or manipulation [2].

The CFTC is seeking public input on the application of specific regulations, including Section 2(c)(2)(D) of the Commodity Exchange Act, which requires leveraged spot crypto contracts to trade on registered DCMs. The agency is also reviewing Part 40 of CFTC regulations, which outlines DCM requirements. Additionally, it is examining potential implications under securities laws, including how the SEC’s framework might apply to non-security assets that could qualify as investment contracts [3].

The public comment period for the proposal is scheduled to close on August 18. Pham emphasized the urgency of the initiative, stating that the CFTC has a “clear and simple solution” to enable immediate digital asset trading at the federal level, in coordination with the SEC’s Project Crypto [4].

The Working Group’s 18 recommendations include amending rules to accommodate blockchain-based derivatives and providing guidance to CFTC-regulated entities regarding their permissible activities with cryptocurrencies. Other recommendations are directed at agencies like the SEC and the Treasury. The CFTC is also seeking to resolve staffing challenges, as it currently operates with only two commissioners, with Pham and Kristin N. Johnson, who is expected to leave later this year, remaining on board [5].

The initiative is expected to enhance market efficiency, broaden access for investors, and reduce fragmentation between spot and futures markets. By enabling spot crypto trading on futures platforms, the CFTC aims to establish a more cohesive and regulated environment for digital asset trading [6].

Source: [1] CFTC Explores Letting Futures Exchanges Trade Spot Crypto (https://www.bloomberg.com/news/articles/2025-08-04/cftc-explores-letting-futures-exchanges-trade-spot-crypto)

[2] CFTC seeks to allow spot crypto trading on registered ... (https://cointelegraph.com/news/cftc-spot-crypto-contracts-trading-initiative)

[3] CFTC Launches Crypto Sprint to Enable Spot Trading on ... (https://www.ainvest.com/news/cftc-launches-crypto-sprint-enable-spot-trading-futures-platforms-2508/)

[4] CFTC to Allow Spot Crypto Trading on Registered ... (https://www.bitget.com/news/detail/12560604895334)

[5] CFTC 'Crypto Sprint' With SEC To Implement Trump Plans (https://cointelegraph.com/news/cftc-crypto-sprint-sec-white-house-plans)

[6] US CFTC Explores Allowing Registered Futures ... (https://www.binance.com/en/square/post/27880255499658)