Key Developments in Crypto Trading
- •CFTC's acting chair Caroline Pham is advancing talks to allow leveraged spot crypto trading.
- •This move could expand U.S. oversight of crypto markets, even during a government shutdown.
- •Discussions involve major exchanges aiming to launch a new trading framework soon.
The development, confirmed after Pham responded “True” to an online report over the weekend, hints at an internal shift inside the CFTC. Rather than waiting for Congress to finalize digital-asset legislation, Pham appears intent on using the agency’s existing powers to extend its reach from crypto derivatives into the cash market itself.
— Caroline D. Pham (@CarolineDPham) November 9, 2025
Negotiations Behind Closed Doors
Multiple people familiar with the matter say the CFTC has been holding technical consultations with several of its registered exchanges to design a framework for leveraged spot crypto trading. These discussions reportedly include both Wall Street-anchored venues — such as CME Group, ICE Futures, and Cboe — and digital-first platforms like Coinbase Derivatives, Kalshi, and Polymarket.
The goal, according to insiders, is to roll out a pilot program as early as next month. Unlike futures or perpetual contracts, these trades would involve direct ownership of digital assets such as Bitcoin and Ether but allow participants to borrow capital against their positions.
Such a structure mirrors traditional margin trading in equities, where a fraction of the total trade value is posted as collateral while the exchange or broker provides the remainder. The approach amplifies both profits and losses — a double-edged tool that U.S. regulators have long treated with caution.
A Power Play During a Political Vacuum
Pham’s timing is striking. She is currently the only sitting commissioner at the CFTC, with four other seats vacant due to the federal government shutdown. The paralysis has halted confirmations for several nominees, including Trump’s pick for a permanent chair, Mike Selig.
With the agency effectively leaderless, Pham has moved swiftly to exercise temporary authority. Her effort to advance leveraged spot trading comes at a time when other federal agencies have been forced into stasis. Insiders view the move as both opportunistic and pragmatic — a chance for the CFTC to assert relevance while Congress remains gridlocked on crypto policy.
Balancing Risk and Innovation
Industry watchers see the proposal as a potential milestone for U.S. crypto markets. For years, leverage-based spot products have existed offshore, where exchanges such as Binance and Bybit cater to global traders with minimal supervision. Bringing similar instruments onto CFTC-regulated platforms would introduce risk-management protocols, investor-protection rules, and mandatory surveillance — features rarely seen in foreign markets.
Yet the plan also invites criticism. Some legal experts warn that aggressive use of existing authority could trigger jurisdictional friction with the Securities and Exchange Commission, which has repeatedly clashed with the CFTC over crypto definitions. Others question whether expanding leverage access during a government shutdown sends the right signal about regulatory priorities.
Looking Ahead
Pham, who is widely expected to transition into a senior legal role at payments company MoonPay after her CFTC tenure, has declined to comment publicly on the talks. For now, her brief acknowledgment online remains the only official confirmation that the initiative exists.
If the proposal advances, it could mark the first time in U.S. history that leveraged spot cryptocurrency trading takes place under direct federal oversight — a shift that would move America’s crypto framework closer to mature financial markets abroad and position Pham as one of the most consequential regulators in the digital-asset era.
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