Acting CFTC Chair Caroline Pham has confirmed plans to approve leveraged spot crypto trading in the United States as early as next month. The regulator is in discussions with licensed exchanges to launch the products.
Pham announced Sunday on X that she continues pushing to enable leveraged crypto spot trading domestically. The Commodity Futures Trading Commission is considering issuing guidance for these trading products following industry consultations.
The regulator maintained meetings with industry representatives throughout the ongoing government shutdown. Pham's confirmation signals regulatory progress continues despite the federal funding disruptions that began on Oct. 1.
Background on CFTC Initiative
The CFTC launched an initiative in August to enable spot crypto asset contract trading on registered exchanges. Pham invited public comment on rules governing retail commodity trading with leverage, margin, or financing.
The Commodity Exchange Act subjects leveraged retail commodity transactions to CFTC jurisdiction unless actual delivery occurs within 28 days. Leveraged crypto spot positions must complete within that timeframe or face regulatory restrictions.
Impact of Government Shutdown and Legislative Progress
Sunday reports indicated the government shutdown may be near its end as the Senate considers a continuing resolution. The shutdown paused non-essential services and furloughed workers after Congress failed to pass annual spending legislation.
Early October reports noted the SEC would not engage in ongoing litigation except in emergency cases during the shutdown. However, senators continued advancing crypto market structure legislation despite the funding lapse.
Industry Outlook and Future Trading Options
U.S. crypto exchanges await final regulatory guidance before launching leveraged spot products. The CFTC's approval would expand trading options available to domestic retail investors.
Meetings on crypto legislation are continuing in the Senate, according to recent reports. The regulatory developments occur as the industry seeks clarity on market structure rules and trading parameters.