CFTC Proposes Spot Crypto Trading on Regulated Futures Exchanges

The U.S. Commodity Futures Trading Commission (CFTC) announced on August 4, 2025, that it plans to permit spot trading of cryptocurrencies, including Bitcoin and Ethereum, on federally regulated futures exchanges. This initiative, part of the CFTC’s broader “crypto sprint,” aims to integrate digital assets more fully into the U.S. financial system by expanding access to regulated trading environments [1]. The move is expected to bring greater clarity and oversight to a market that has largely operated outside the reach of federal commodity laws.

Under the proposal, Designated Contract Markets (DCMs) — exchanges registered with the CFTC — will be allowed to offer direct trading of cryptocurrencies, moving beyond traditional futures contracts. This regulatory shift could streamline the legal status of digital assets by utilizing existing frameworks, potentially avoiding the need for new federal legislation [1]. Acting CFTC Chair Caroline Pham emphasized that this initiative supports the Trump administration’s broader goals for integrating digital assets into the U.S. regulatory landscape and aligns with the Securities and Exchange Commission’s (SEC) parallel Project Crypto effort [1].

The CFTC is currently accepting public feedback on the proposal until August 18, 2025. The agency is particularly interested in how the new framework interacts with existing securities laws and how digital assets should be classified under current legal definitions [1]. This classification issue remains a key challenge in the crypto space, as many assets continue to be treated as securities under the Howey test, creating regulatory ambiguity.

This development marks a growing coordination between the CFTC and SEC in regulating digital assets. The two agencies are working toward a unified oversight model, which could help streamline the regulatory landscape and provide greater clarity for market participants. The CFTC’s approach seeks to leverage existing infrastructure and legal mechanisms, offering a pragmatic path forward without requiring legislative action [1].

If finalized, the CFTC’s proposal could significantly enhance investor confidence by providing a more transparent and regulated environment for both institutional and retail participants [1]. The move is expected to respond to increasing demand for clearer access to crypto markets and could position the U.S. as a more attractive jurisdiction for exchanges and investors seeking legal clarity and compliance assurance.

Source: [1] US Derivatives Watchdog to Open Futures Exchanges to Spot Crypto Trading (https://cryptonews.com/news/futures-exchanges-may-soon-list-spot-crypto-trading-cftc-plan/)