CFTC Eyes Regulated Spot Crypto Trading as Congress Stalls

In a move that could redefine crypto regulation in the United States, Caroline Pham, acting chair of the Commodity Futures Trading Commission (CFTC), confirmed that the agency is preparing to approve spot cryptocurrency trading - including leveraged products - on regulated U.S. exchanges as early as next month.

The confirmation came through a brief post on X, where Pham validated a report first published by CoinDesk. The initiative signals a shift in regulatory strategy: rather than waiting for new congressional mandates, the CFTC is using its existing authority under the Commodity Exchange Act, which already covers leveraged commodity trades involving retail investors.

According to industry sources, Pham has held direct discussions with several major designated contract markets, including CME, Cboe, and ICE Futures, alongside crypto-native platforms such as Coinbase Derivatives and Polymarket. These exchanges could soon offer spot trading for Bitcoin and Ethereum with margin and financing options, a practice long available offshore but never under U.S. federal supervision.

If implemented, this would bring leverage trading – a key driver of crypto market liquidity – under institutional-grade oversight, enforcing margin controls, transparent risk management, and investor protection standards. Traders would be able to amplify exposure to digital assets legally within the U.S., marking a first for the domestic market.

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Pham’s initiative comes during an unusual moment for the agency: she is the only active commissioner at the CFTC, granting her broad discretion to advance key policies despite Washington’s ongoing political gridlock. Her move coincides with delays in confirming Trump’s nominee, Mike Selig, who is expected to eventually take over leadership of the agency.

The timing is also notable. In September, the SEC and CFTC jointly clarified that registered exchanges are not barred from facilitating spot commodity trading, paving the way for this development. Industry leaders view the step as a crucial milestone for integrating crypto into mainstream financial infrastructure.

“Having spot crypto markets under CFTC oversight is a breakthrough moment,” said Alexander Blume, CEO of Two Prime Digital Assets. “It brings transparency and credibility to an area that has long operated in regulatory gray zones.”

While Pham is reportedly considering a transition to MoonPay after her CFTC tenure, her latest move could become one of the most significant regulatory milestones in U.S. crypto history – positioning the CFTC as the first agency to formally legitimize leveraged spot crypto trading onshore.