U.S. CFTC Considers Allowing Spot Crypto Trading on Registered Futures Exchanges

The U.S. Commodity Futures Trading Commission (CFTC) said it is looking to allow the trading of spot crypto contracts on registered exchanges and is seeking input from stakeholders as it looks to implement President Donald Trump's crypto ambitions.

The agency wants stakeholders to work with it to provide regulatory clarity on listing spot crypto asset contracts on a CFTC registered futures exchange — also known as a designated contract market (DCM), one of the types of licenses the CFTC administers, Acting Chairman Caroline Pham said in a Monday statement.

"Starting today, we invite all stakeholders to work with us on providing regulatory clarity on how to list spot crypto asset contracts on a DCM using our existing authority, as I have previously proposed since 2022," Pham said. "Together, we will make America the crypto capital of the world.”

The "listed spot crypto trading initiative" is the first step the CFTC has taken in response to Trump's working group on digital asset markets report that was published last week. The report set out expectations for U.S. regulators, such as that the CFTC will enable the trading of digital assets by providing clarity to the market on areas such as registration and custody.

The initiative is also a part of the Securities and Exchange Commission's "Project Crypto" which is a commission-wide initiative that aims to modernize securities rules so financial markets can move onto the blockchain, the technology that underpins crypto, SEC Chairman Paul Atkins said in a release last week.

“Under President Trump’s strong leadership and vision, the CFTC is full speed ahead on enabling immediate trading of digital assets at the Federal level in coordination with the SEC’s Project Crypto,” said Pham.

Stakeholders are encouraged to submit their suggestions on listing spot crypto asset contracts by Aug. 18.

Congress is also working on specifying what roles the CFTC and SEC should have in overseeing crypto, with market structure legislation — such as the House of Representatives' Clarity Act — aiming to make the commodities regulator the primary spot market overseer for crypto.