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CFTC Moves to Launch Leveraged Spot Crypto Trading by Year-End

The acting chair is using existing Commodity Exchange Act powers to shift leveraged spot activity onto regulated U.S. exchanges.

Overview

  • Acting Chair Caroline Pham said she expects leveraged spot crypto products to begin trading before year’s end, with a push for launches as early as December.
  • The CFTC is in direct talks with designated contract markets including CME Group, Cboe Futures Exchange, ICE Futures, and crypto-native venues such as Coinbase Derivatives and Bitnomial.
  • Officials say the initiative implements recommendations from the President’s Working Group on Digital Asset Markets under existing Commodity Exchange Act authority.
  • The planned offerings would enable margin, leverage, and financing on spot assets under institutional oversight, providing a domestic alternative to offshore platforms used by U.S. traders.
  • Mike Selig has been nominated to become permanent CFTC chair and awaits Senate confirmation, and industry voices such as Two Prime’s Alexander Blume have welcomed the move as a step toward broader adoption.