CFTC to Allow Spot Crypto Trading on Regulated Futures Exchanges

The U.S. Commodity Futures Trading Commission (CFTC) has announced a plan to enable spot trading of cryptocurrencies on federally regulated futures exchanges, marking a pivotal step in expanding access to digital assets through established market infrastructure. The initiative, unveiled by CFTC Acting Chairman Caroline Pham on August 4, 2025, is part of the agency’s broader “crypto sprint” to implement policy recommendations from the President’s Working Group on Digital Asset Markets [1].

Under the proposed framework, registered futures exchanges—known as Designated Contract Markets (DCMs)—will be permitted to offer spot trading for cryptocurrencies such as Bitcoin and Ethereum. This move aims to bring immediate regulatory clarity and leverage existing market structures to facilitate direct exchange of digital assets, as opposed to futures contracts that speculate on future prices [1].

Pham emphasized that the plan aligns with President Trump’s administration goals to integrate digital assets into the federal regulatory framework. It also complements the Securities and Exchange Commission’s (SEC) recently launched Project Crypto, a parallel effort to modernize securities laws for blockchain-based assets [1]. By enabling spot trading through DCMs, the CFTC seeks to offer a legally sound path for exchanges to operate within federal commodity laws, without requiring new legislation from Congress [1].

The CFTC has invited public input on the proposed changes, with stakeholders encouraged to submit feedback by August 18, 2025. The agency is particularly interested in how its framework interacts with existing securities regulations and how to define the boundary between commodity and security classifications for crypto assets [1]. This is crucial as many tokens remain legally ambiguous, often treated as securities due to the Howey test, a legal standard for determining whether an investment qualifies as a security [1].

The initiative also reflects increasing inter-agency coordination between the CFTC and SEC. SEC Chairman Paul Atkins has separately launched Project Crypto, aimed at clarifying the classification, distribution, and trading of crypto assets. Together, the two agencies appear to be moving toward a unified oversight model that could streamline the regulatory landscape for digital assets [1].

If finalized, the CFTC’s proposal would allow spot crypto trading to proceed under the same legal framework that governs traditional commodity trading. This could significantly enhance investor confidence, particularly among institutional players, by offering a more transparent and regulated environment [1]. It also addresses growing demand from both retail and institutional investors for clearer access to crypto markets.

The development underscores the U.S. government’s evolving stance toward digital assets, which has shifted toward a more structured regulatory approach following years of uncertainty. As the CFTC and SEC continue to refine their respective roles, the U.S. may emerge as a more attractive jurisdiction for crypto exchanges and market participants seeking legal clarity and compliance assurance [1].

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/)