CFTC Pushes Spot Crypto Trading on Futures Exchanges Amid Regulatory Shift

The U.S. Commodity Futures Trading Commission (CFTC) has initiated a regulatory push to allow the trading of “spot crypto asset contracts” on CFTC-registered futures exchanges, signaling a potential shift in how digital assets are classified and regulated at the federal level. The move is part of the CFTC’s “Crypto Sprint” initiative, which seeks to implement 18 policy recommendations from President Donald Trump’s Working Group on Digital Asset Markets [1]. Acting Chair Caroline Pham emphasized in a statement that the agency is “full speed ahead” on enabling immediate trading of digital assets at the federal level, in coordination with the SEC’s Project Crypto [1].

Under the proposed framework, a spot crypto asset contract would function as a listed, futures-style contract that mirrors the price of a specific cryptocurrency and settles in the actual digital asset, rather than cash. These contracts would be traded on CFTC-registered designated contract markets (DCMs), enhancing transparency and potentially bridging the gap between spot and derivatives markets [2]. The CFTC, which typically regulates derivatives rather than commodities, is seeking public input on the application of Section 2(c)(2)(D) of the Commodity Exchange Act and Part 40 of its regulations, both of which govern retail commodity transactions and DCM compliance requirements [1].

The agency is also examining potential implications under securities laws, particularly how the SEC’s regulatory framework might apply to trading non-security assets that could be deemed investment contracts [1]. Public comments on the initiative are due by August 18, 2025, and will be used to shape the final regulatory structure. The Working Group’s recommendations also include clarifying how crypto can be treated as a commodity, adapting rules to accommodate decentralized finance (DeFi) participants, and providing guidance to CFTC-regulated entities on their dealings with crypto [3].

The CFTC is currently operating with only two commissioners: Acting Chair Caroline Pham and Kristin N. Johnson, who is expected to leave the agency later this year. The remaining seats are vacant, including those of former Chair Rostin Behnam and two others who have stepped down. The nomination of Brian Quintenz for permanent chair has been delayed, following an intervention by the Trump administration that postponed a Senate vote on his confirmation [1].

The initiative represents a broader effort to integrate digital assets into the U.S. financial system and align regulatory approaches across agencies. By enabling spot crypto trading on regulated exchanges, the CFTC aims to promote market integrity, investor protection, and innovation in the digital asset space [4].

Source: [1] CFTC seeks to allow spot crypto trading on registered exchanges (https://www.reuters.com/legal/government/cftc-allow-listed-spot-crypto-trading-registered-exchanges-2025-08-04/)

[2] CFTC Launches Crypto Sprint to Enable Spot Trading on Futures Exchanges (https://www.ainvest.com/news/cftc-launches-crypto-sprint-enable-spot-trading-futures-exchanges-2508-4/)

[3] US CFTC pushes to allow spot virtual asset trading on registered exchanges (https://bloomingbit.io/en/feed/news/94208)

[4] U.S. CFTC moves to regulate spot crypto markets via futures exchanges like CME (https://www.cryptopolitan.com/cftc-moves-to-regulate-spot-crypto-markets/)