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CFTC Moves to Enable Leveraged Spot Crypto Trading on Regulated Exchanges

The interim chair says the agency is relying on existing authority to steer DCMs toward compliant spot listings with leverage.

Overview

  • Acting Chair Caroline Pham confirmed the CFTC is in talks with major designated contract markets, including CME and Coinbase Derivatives, to list spot crypto products that use margin and financing.
  • New offerings could begin trading before year-end, with some products described as potentially launching as soon as next month, according to Pham’s statement and reporting based on people familiar with the plans.
  • The contemplated trades would occur on fully regulated DCMs under commodities law, bringing leveraged spot activity under U.S. market rules.
  • Separately, the agency is advancing a pilot to allow stablecoins as tokenized collateral in derivatives clearing, with a target for U.S. clearinghouses by the second quarter of next year, according to people familiar.
  • Pham is currently operating as the CFTC’s lone commissioner while President Trump’s nominee Mike Selig awaits Senate confirmation.