The U.S. Commodity Futures Trading Commission (CFTC) has authorized spot cryptocurrency trading on federally regulated futures exchanges for the first time. The move opens a new channel for U.S. traders to buy and sell digital assets under long‑standing federal market rules.
CFTC Opens Spot Crypto on Registered Exchanges
Acting CFTC Chair Caroline D. Pham announced that listed spot crypto products can now trade on CFTC‑registered futures exchanges, also known as Designated Contract Markets (DCMs). The move extends the agency’s oversight from crypto derivatives such as futures and options into certain spot markets, particularly for digital assets treated as commodities like Bitcoin and Ethereum.
The decision follows recommendations from the President’s Working Group on Digital Asset Markets and comes after months of consultations with industry participants and other regulators.
Officials frame the shift as a way to offer U.S. users alternatives to offshore platforms by placing spot trading inside venues that already meet strict standards for surveillance, reporting, margin, and clearing.
Rationale Behind Development
Pham links the authorization to a series of high‑profile failures and misconduct cases on overseas exchanges. She argues that more activity should move into supervised U.S. markets with established customer protections.
Under the new framework, spot crypto products listed on registered exchanges must follow existing CFTC rules on market integrity. The products are also subject to the same enforcement tools the agency uses in other commodity markets.
Major DCM operators such as CME Group and Cboe could list spot products alongside their existing crypto derivatives, potentially concentrating liquidity in regulated venues over time. The CFTC has also tied the spot initiative to its broader “crypto sprint”. This explores tokenized collateral, stablecoin use in derivatives, and technical amendments to clearing and settlement rules so that blockchain infrastructure can fit within current regulations.
The action indicates a clearer division, with the Securities and Exchange Commission (SEC) concentrating on tokens categorised as securities and the CFTC handling several crypto commodities.
However, it does not end jurisdictional disputes in Washington. Market operators now have less confusion thanks to a recent joint statement from the agencies clarifying that exchanges registered with any regulator are not automatically prohibited from conducting certain spot cryptocurrency deals.
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