Acting Chair Caroline Pham confirms initiative as agency leverages existing powers amid government shutdown
The Commodity Futures Trading Commission (CFTC) is preparing to allow leveraged spot cryptocurrency trading on regulated U.S. exchanges, marking a major step toward integrating crypto into the traditional financial system. Acting CFTC Chair Caroline Pham confirmed that the agency is in talks with several designated contract markets (DCMs) to launch these products as early as next month, according to a CoinDesk report.
CFTC’s Accelerated Push for Regulated Crypto Markets
In a post on X (formerly Twitter), Pham responded “True” to CoinDesk’s report, confirming the discussions despite ongoing federal government shutdowns that have stalled other crypto policy initiatives.
The plan involves working with CFTC-regulated exchanges such as CME Group, Cboe Futures Exchange, ICE Futures, and crypto-native platforms like Coinbase Derivatives, Kalshi, and Polymarket US, to introduce spot crypto products featuring margin, leverage, and financing options.
Pham told CoinDesk that the initiative aligns with recommendations from the President’s Working Group on Digital Asset Markets, adding that the CFTC is using existing powers under the Commodity Exchange Act to move forward while Congress debates broader legislative clarity.
What Leveraged Spot Crypto Trading Means
Leveraged spot trading allows investors to borrow capital to amplify exposure to cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). For example, with 5x leverage, a trader could control $5,000 in BTC with $1,000 in margin, magnifying both potential gains and losses.
While leveraged spot trading is common on offshore crypto exchanges like Binance and Bybit, bringing it to CFTC-regulated platforms introduces institutional-grade oversight, stronger risk management, and enhanced investor protection — features long missing from unregulated markets.
Regulatory Significance and Market Impact
The CFTC’s approach marks a strategic regulatory shift. Rather than waiting for Congress to grant explicit authority over spot crypto markets, the agency is applying its existing jurisdiction over retail leveraged commodity trading. This effectively brings crypto spot products under federal oversight for the first time.
In September, the SEC and CFTC issued joint guidance clarifying that registered exchanges may facilitate spot trading of certain commodity-based assets, including cryptocurrencies — a move seen by many as a regulatory green light for mainstream crypto integration.
Leadership Transition at the CFTC
Pham currently serves as the sole commissioner at the CFTC, giving her broad latitude to act. However, President Trump’s nominee Mike Selig, currently chief counsel for the SEC’s Crypto Task Force, is expected to replace her once confirmed by the Senate. Due to the government shutdown, the confirmation timeline remains uncertain.
According to CoinDesk, Pham is expected to join global crypto payments firm MoonPay as chief legal officer and chief administrative officer after her CFTC tenure.
If approved, leveraged spot crypto trading on regulated exchanges could reshape U.S. digital asset markets, bridging the gap between traditional finance and crypto. The initiative positions the CFTC as a proactive regulator leveraging existing frameworks to legitimize and secure crypto trading infrastructure — potentially ushering in a new era of compliant, institutional-grade digital asset trading in the United States.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.