The Commodity Futures Trading Commission (CFTC) is taking steps to allow spot crypto asset trading on registered futures exchanges in the United States. Acting Chairman Caroline D. Pham announced the initiative as the first action in the CFTC's "crypto sprint," which aims to implement recommendations from President Trump's Working Group on Digital Asset Markets. This move signals a potential shift toward a more defined regulatory framework for digital assets.
Under current regulations, retail commodity trading involving leverage, margin, or financing must be conducted on designated contract markets (DCMs). The CFTC is now seeking public feedback on listing spot crypto contracts on these regulated exchanges. The agency is specifically requesting input on Section 2(c)(2)(D) of the Commodity Exchange Act, Part 40 of CFTC regulations, and potential implications under securities laws regarding an SEC framework for trading non-security assets that are part of an investment contract. Interested parties can submit their comments through the CFTC website until August 18. All submissions will be made public on CFTC.gov.
Pham stated that the CFTC is moving "full speed ahead" to enable immediate trading of digital assets at the federal level, in coordination with the SEC's "Project Crypto". She believes a clear solution exists within the CFTC's current authority. The CFTC aims to unify oversight and create a more cohesive regulatory structure. By enabling futures exchanges to list spot crypto contracts under the Commodity Exchange Act on DCMs, the CFTC intends to unify oversight and establish a more cohesive regulatory structure.
This initiative is part of a broader effort by the CFTC and SEC to implement digital asset recommendations set forth by the Trump administration. "Project Crypto" aims to fast-track rules for commodities, DeFi, and crypto derivatives. The President's Working Group on Digital Asset Markets issued 18 recommendations for crypto market oversight, with two directly applicable to the CFTC. These include issuing guidance on crypto commodity classification, registration pathways, and DeFi-related rules, as well as revising existing frameworks to accommodate blockchain-based derivatives. The remaining 16 recommendations require collaboration between the SEC, Treasury Department, and other regulators.
The CFTC and SEC will jointly develop a rulemaking process, coordinate on regulatory clarity, and explore creating a crypto sandbox for innovation. Longer term, the agencies are expected to allow registrants to offer integrated crypto services through unified user interfaces. Congress has been asked to legislate a clearer division of responsibilities between the CFTC and SEC, potentially granting the CFTC full oversight of spot markets in non-security digital assets.
This move by the CFTC is seen as a critical step toward legitimizing crypto spot markets within the existing futures infrastructure. Allowing spot trading on futures platforms could provide a more efficient, integrated trading experience and increase investor access to spot crypto markets. It also aims to bring retail-focused spot trading under direct regulation, especially trades involving leverage or margin. The CFTC's action could lead to a more formal framework for defining and regulating digital tokens. The SEC, led by Chair Paul Atkins, has expressed support for a more practical approach, outlining a roadmap for crypto-related disclosures, exemptions, and clearer security classifications.
The House of Representatives recently passed the Digital Asset Market Clarity Act of 2025 (the CLARITY Act), which introduces a comprehensive regulatory framework for the digital asset sector. The CLARITY Act would grant the CFTC jurisdiction and regulatory authority over "digital commodities," including establishing new registration requirements for digital commodity exchanges, brokers, and dealers. It would also amend the Commodity Exchange Act (CEA) to incorporate "digital commodities" into various aspects of the CFTC's existing jurisdiction and regulations.
