US Derivatives Watchdog to Open Futures Exchanges to Spot Crypto Trading

The Commodity Futures Trading Commission plans to allow spot cryptocurrency trading on exchanges it already regulates, expanding access to digital assets through federally registered futures markets.

CFTC Acting Chairman Caroline Pham unveiled the plan on Monday, calling it the first move in the commission’s broader “crypto sprint,” a program aimed at quickly implementing key policy recommendations from the President’s Working Group on Digital Asset Markets.

Pham framed the effort as part of a broader push under President Trump’s leadership to bring digital assets into the federal regulatory fold.

She said the initiative would enable immediate trading of digital assets at the federal level, in coordination with the Securities and Exchange Commission’s recently announced Project Crypto.

CFTC Invites Input on Spot Crypto Listings via DCMs

“There is a clear and simple solution the CFTC can implement now,” Pham said. “The Commodity Exchange Act currently requires that retail trading of commodities with leverage, margin, or financing must be conducted on a designated contract market.

“Starting today, we invite all stakeholders to work with us on providing regulatory clarity on how to list spot crypto asset contracts on a DCM using our existing authority.”

The CFTC’s plan would enable exchanges already registered to trade futures contracts, known as Designated Contract Markets, to also offer spot trading for cryptocurrencies like Bitcoin and Ethereum.

In spot trading, buyers and sellers exchange digital assets directly and immediately, unlike futures trading, where contracts are based on predictions of future crypto prices.

Regulators Ask for Clarity on Crypto-Securities Boundary

Stakeholders have until Aug. 18, 2025, to share their feedback through the CFTC’s website. In the meantime, the agency is seeking input on how to regulate spot crypto trading. It is focusing on laws that govern retail commodity transactions. Additionally, it is reviewing compliance requirements for registered exchanges.

The commission is also seeking input on how its framework would interact with securities regulations, especially in cases where crypto assets may not meet the legal definition of securities.

All comments submitted will be made public on the CFTC’s website.

Unified Crypto Framework May Merge Futures and Securities Oversight

The move signals growing coordination between the CFTC and SEC as both agencies look to bring clarity to crypto regulation.

Just last week, SEC Chairman Paul Atkins introduced Project Crypto. This is a broad initiative to modernize securities laws for blockchain-based assets. It aims to clarify how crypto assets are classified, distributed and traded. In particular, it seeks to resolve longstanding confusion around the Howey test.

The test is used to determine whether an asset qualifies as a security. Over time, it has become a sticking point for crypto companies. As a result, many have treated their tokens as securities by default. They remain cautious due to the risk of enforcement actions.

Project Crypto is expected to provide a more tailored regulatory approach.

With the CFTC’s latest initiative, the US may be moving closer to a dual-agency framework for digital asset regulation. This shift involves both the CFTC and the SEC. It comes at a time of growing demand from institutional and retail investors. Many are seeking clearer, regulated access to cryptocurrencies.

If finalized, the CFTC’s plan could open the door for spot crypto trading under existing commodity laws, giving markets greater legal certainty without waiting for new legislation from Congress.

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