The Commodity Futures Trading Commission (CFTC) has officially announced it will allow the trading of spot crypto asset contracts on futures exchanges registered under its oversight, marking a significant advancement in U.S. crypto regulation. Acting Chair Caroline Pham emphasized that the initiative leverages the agency’s existing authority under the Commodity Exchange Act to permit these contracts to be listed on Designated Contract Markets (DCMs), which are already subject to stringent federal standards for market surveillance, custody and anti‐fraud compliance.
Under the proposal, exchanges such as the Chicago Mercantile Exchange (CME) and other CFTC‐registered DCMs would be authorized to list spot contracts for major cryptocurrencies including Bitcoin and Ethereum. These contracts would settle in the actual digital asset rather than cash, providing a direct federal‐level mechanism for spot trading that bypasses the regulatory uncertainty and fragmented oversight that has historically characterized the U.S. spot crypto market.
The CFTC’s plan is being coordinated with the Securities and Exchange Commission (SEC) through its Project Crypto initiative, reflecting an unprecedented level of interagency collaboration. SEC Chair Paul Atkins has concurrently launched efforts to clarify when digital tokens qualify as securities and to establish disclosure and exemption guidelines. Together, the agencies aim to create a unified regulatory framework that reduces jurisdictional gaps and enhances market integrity.
Public feedback is being solicited on the proposal, with stakeholders invited to submit comments by August 18, 2025. The CFTC will use the input to determine whether formal rulemaking is necessary or if the changes can proceed through interpretive guidance. Finalized rules could be in place as early as 2026, potentially drawing significant trading volume back to U.S. platforms and boosting institutional participation under a clear federal regime.
Industry observers anticipate that bringing spot trading under the CME’s and other DCMs’ oversight will reduce basis risk between spot and futures markets, narrow spreads and increase liquidity. By maintaining consistency with existing derivatives regulations, the CFTC seeks to avoid lengthy legislative processes and deliver immediate market benefits. If adopted, the move will represent a landmark shift in U.S. digital asset policy and may position the country as the global leader in regulated crypto trading.
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