Financial and Business News

CFTC Wants to Allow “Spot Crypto Asset Contracts” Trading on Registered Exchanges

Tuesday, 05/08/2025 | 04:49 GMT by Arnab Shome
  • The initiative is part of the regulator’s “crypto sprint” to implement the recommendations of the Crypto Working Group.
  • It is now seeking public feedback on effective regulations for spot crypto trading.
The CFTC office building in Washington DC

The US Commodity Futures Trading Commission (CFTC) is set to launch an initiative to allow trading of “spot crypto asset contracts” on registered futures exchanges in the country, the regulator announced yesterday (Monday).

Aligning with Working Group’s Recommendations

The initiative falls under the agency’s “crypto sprint”, which focuses on implementing the recommendations of the Working Group on Digital Asset Markets appointed by President Donald Trump.

The Working Group’s report, released last week, advised the CFTC to provide greater clarity on how cryptocurrencies are considered commodities, the registration requirements for decentralised finance market participants, and how regulated entities can be involved in crypto.

“The CFTC is moving full speed ahead on enabling immediate trading of digital assets at the Federal level, in coordination with the SEC’s Project Crypto,” said the CFTC’s Acting Chair, Caroline Pham.

Commissioner Caroline D. Pham
Caroline Pham, Source: CFTC

“The Commodity Exchange Act currently requires that retail trading of commodities with leverage, margin, or financing must be conducted on a DCM. Starting today, we invite all stakeholders to work with us to provide regulatory clarity on how to list spot crypto asset contracts on a DCM using our existing authority, as I have previously proposed since 2022.”

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Seeking Feedback on Key Areas

The regulator now invites “interested stakeholders” to submit their feedback on the proposal to list spot crypto asset contracts on a DCM.

One of the areas in which the agency is seeking public input relates to the regulation that requires retail commodity transactions involving leverage, margin, or financing to be conducted on CFTC-registered DCMs. Other areas concern rules for DCMs, including registration and compliance requirements, as well as enforcement provisions.

While the current crypto drive at the CFTC is being led by Pham, she will soon be replaced by President Trump’s permanent appointment for the CFTC Chair, Brian Quintenz. Notably, he has strong ties to the crypto industry, serving as the Global Head of Crypto Policy at a16z, the crypto arm of the venture capital firm Andreessen Horowitz. He will step down after confirmation by the US Senate.

The US Commodity Futures Trading Commission (CFTC) is set to launch an initiative to allow trading of “spot crypto asset contracts” on registered futures exchanges in the country, the regulator announced yesterday (Monday).

Aligning with Working Group’s Recommendations

The initiative falls under the agency’s “crypto sprint”, which focuses on implementing the recommendations of the Working Group on Digital Asset Markets appointed by President Donald Trump.

The Working Group’s report, released last week, advised the CFTC to provide greater clarity on how cryptocurrencies are considered commodities, the registration requirements for decentralised finance market participants, and how regulated entities can be involved in crypto.

“The CFTC is moving full speed ahead on enabling immediate trading of digital assets at the Federal level, in coordination with the SEC’s Project Crypto,” said the CFTC’s Acting Chair, Caroline Pham.

Commissioner Caroline D. Pham
Caroline Pham, Source: CFTC

“The Commodity Exchange Act currently requires that retail trading of commodities with leverage, margin, or financing must be conducted on a DCM. Starting today, we invite all stakeholders to work with us to provide regulatory clarity on how to list spot crypto asset contracts on a DCM using our existing authority, as I have previously proposed since 2022.”

You may also like: CFTC Folds Its Hand in Election Betting Showdown with Kalshi

Seeking Feedback on Key Areas

The regulator now invites “interested stakeholders” to submit their feedback on the proposal to list spot crypto asset contracts on a DCM.

One of the areas in which the agency is seeking public input relates to the regulation that requires retail commodity transactions involving leverage, margin, or financing to be conducted on CFTC-registered DCMs. Other areas concern rules for DCMs, including registration and compliance requirements, as well as enforcement provisions.

While the current crypto drive at the CFTC is being led by Pham, she will soon be replaced by President Trump’s permanent appointment for the CFTC Chair, Brian Quintenz. Notably, he has strong ties to the crypto industry, serving as the Global Head of Crypto Policy at a16z, the crypto arm of the venture capital firm Andreessen Horowitz. He will step down after confirmation by the US Senate.

About the Author: Arnab Shome
Arnab Shome
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Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.

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