CFTC Proposes Spot Crypto Trading on Regulated Futures Exchanges

The U.S. Commodity Futures Trading Commission (CFTC) is moving to allow spot crypto trading on federally regulated futures exchanges, signaling a major shift in digital asset regulation. Acting CFTC Chair Caroline D. Pham announced the proposal, which aims to use the agency’s existing authority under the Commodity Exchange Act to streamline oversight and bring clarity to the crypto market. This initiative, part of the CFTC’s “crypto sprint,” would permit Designated Contract Markets (DCMs) to offer direct trading of cryptocurrencies like Bitcoin ($BTC) and Ethereum ($ETH) without requiring new legal frameworks or extended approvals [1].

The move is expected to reduce uncertainty for U.S. crypto platforms that have, until now, operated under ambiguous rules or even relocated overseas. By enabling existing futures exchanges to expand into spot trading, the CFTC seeks to create a more transparent and investor-protected environment. Pham emphasized that the agency is not waiting for new legislation from Congress but is leveraging its current regulatory tools to bring order to the market [1].

The proposal aligns with broader regulatory coordination efforts, including the Securities and Exchange Commission’s (SEC) Project Crypto, which aims to clarify the classification and trading of blockchain-based assets. This joint approach between the CFTC and SEC may help unify the fragmented regulatory landscape and reduce compliance burdens for market participants [1].

Industry analysts note that the new framework could attract more institutional investors and improve market integrity. Charles Liu, a crypto market analyst, highlighted that the CFTC’s plan allows for better surveillance and compliance, which are crucial for building trust in the sector [1].

For exchanges already operating as DCMs, the initiative offers a competitive edge by enabling them to integrate spot trading under a federal regulatory umbrella. This could lead to greater participation from both retail and institutional investors. Conversely, exchanges that have operated outside the futures ecosystem may now face increased pressure to comply with the new rules in order to remain relevant in the U.S. market [1].

The public comment period for the proposal closed on August 18, 2025, with implementation expected by 2026. The initiative is seen as a step toward positioning the U.S. as a global leader in digital finance, balancing innovation with regulatory oversight. By aligning spot and futures trading under a single regulatory framework, the CFTC aims to foster a more stable and accessible environment for crypto trading in the U.S. [1].

Source: [1] New CFTC Framework Aims to Launch Spot Crypto Trading in the U.S. (https://coinmarketcap.com/community/articles/6891ec5bd648e04dc407e0ef/)