The U.S. CFTC is promoting the launch of cryptocurrency spot leverage trading on regulated exchanges

The acting chair of the Commodity Futures Trading Commission (CFTC), Caroline Pham, confirmed a previous report: the agency is in direct discussions with regulated trading platforms and plans to launch cryptocurrency spot trading, including leveraged products, as early as next month. Even though the federal government is currently shut down due to budget issues and other cryptocurrency-related policy advancements are stalled, this plan is still moving forward.

Pham has held talks with several designated contract markets (DCM) under CFTC regulation. The list includes financial giants CME, Cboe Futures Exchange, ICE Futures Exchange, as well as crypto-native platforms Coinbase Derivatives and prediction markets Kalshi and Polymarket US. The discussions involve launching cryptocurrency spot trading products with margin, leverage, and financing features. In an interview, Pham stated, "As we continue to work with Congress to bring legislative clarity to these markets, we are also leveraging our existing authority to swiftly implement the relevant recommendations from the President's Working Group on Digital Assets report." This initiative marks a significant shift in the regulatory approach of U.S. regulators towards the cryptocurrency market. Before Congress formally grants the CFTC explicit regulatory authority over the cryptocurrency spot market, Pham has chosen to utilize existing provisions in the Commodity Exchange Act, which require all retail transactions involving leverage, margin, or financing to occur on regulated exchanges.