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CFTC Pushes December Debut of Leveraged Spot Crypto Trading as Senate Draft Elevates Its Role

A new Senate proposal would codify CFTC primacy over most digital assets, reinforcing the agency’s bid to bring onshore leveraged spot trading under existing authority.

Overview

  • Acting CFTC Chair Caroline Pham says leveraged spot crypto products could begin trading before year’s end, with a pilot targeted as early as December.
  • The CFTC has held technical talks with multiple designated contract markets, including CME Group, Coinbase Derivatives, Cboe, and ICE, to design these offerings.
  • Pham says the agency will rely on the Commodity Exchange Act and President’s Working Group recommendations to supervise retail spot trades that involve leverage, margin, or financing.
  • The Senate Agriculture Committee released a bipartisan draft to shift primary oversight of most cryptocurrencies to the CFTC, leaving DeFi and AML details for further negotiation.
  • The push comes as the CFTC operates with a single acting chair and President Trump’s nominee Mike Selig awaits Senate confirmation, raising questions about resources and capacity.