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3w ago

CFTC Proposes Listing Spot Crypto Contracts on Futures Exchanges

A public comment period is now open for the proposal that would list spot crypto contracts on DCMs to unify spot with derivatives trading

Signage is seen outside of the US Commodity Futures Trading Commission (CFTC) in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly/File Photo
U.s. cftc considers allowing spot crypto trading on registered futures exchanges
cftc
CFTC explores allowing futures exchanges to offer spot Bitcoin, crypto trading

Overview

  • Acting Chair Caroline D. Pham unveiled the August 4 plan to use existing Commodity Exchange Act authority for physically settled spot crypto asset contracts on CFTC-registered designated contract markets
  • The CFTC invited stakeholder feedback through August 18 on structuring spot contracts for Bitcoin, Ethereum, Solana and XRP under DCM regulations
  • The initiative is part of the agency’s Crypto Sprint and is coordinated with the SEC’s Project Crypto to close oversight gaps between spot and derivatives markets
  • Physically settled contracts on exchanges like CME Group aim to improve price transparency, market integrity and compliance without new legislation
  • Legal experts caution the proposal could conflict with the SEC’s securities jurisdiction and expose unresolved asset-classification risks