Caught between waiting for Congress and moving forward, the Commodity Futures Trading Commission (CFTC) has chosen to act. Under Acting Chair Caroline Pham, the agency is moving forward with plans to launch spot crypto products, including leveraged trading options, on U.S.-regulated exchanges, which could go live as early as next month.
CFTC Advances Spot Crypto Plans
According to a report by CoinDesk, later confirmed on X by Acting Chairman Caroline Pham, the CFTC has been meeting directly with regulated exchanges planning to list spot crypto contracts. The agency is also preparing guidance to oversee this trading, continuing progress even as other crypto-related policy initiatives face delays from the ongoing federal government shutdown.
Pham explained that while the CFTC remains in consultation with Congress on establishing clearer digital asset laws, it is simultaneously relying on its current powers to follow the direction set by the President’s Working Group on Digital Asset Markets. She noted that some products could begin trading before year-end and added that arrangements are being made to ensure a smooth handover to President Trump’s nominee for the permanent CFTC chair role once confirmed.
Leveraged Trading on Designated Contract Markets
Under the CFTC plan, crypto trades using borrowed funds or leverage will take place on designated contract markets (DCMs). These exchanges will operate fully under existing commodities regulations. Still, the framework covers only a portion of the market, leaving future legislation to define how the broader U.S. crypto spot sector will operate.
Within this context, DCMs that already participate in cryptocurrency trading are likely to introduce new products the fastest. Firms such as Coinbase and Bitnomial, along with prediction-market platforms like Kalshi and Polymarket, hold DCM licenses and are positioned to act promptly.
Cody Carbone, CEO of the Digital Chamber, viewed the CFTC’s proactive approach as a constructive step for the industry. He pointed out that since major market structure reforms depend on Congress returning to normal operations, regulatory agencies guided by the president’s executive order and associated task forces must take charge for now.
Typically, leveraged spot trading allows investors to use borrowed capital to increase their exposure to cryptocurrencies. This can amplify potential gains but also raises the risk of losses. Bringing these products under CFTC supervision introduces stronger risk controls, tighter oversight, and enhanced safeguards for investors.
Pham’s Leadership Keeps CFTC Moving Forward
Caroline Pham is currently leading the CFTC on her own, a rare scenario for an agency traditionally managed by five commissioners. Her hands-on leadership and proactive approach have earned praise from the crypto industry for keeping important work on track:
- •She has worked to make the CFTC more efficient, restore its core functions, and expand oversight of digital assets, while pressing ahead with key policy work despite delays in confirming President Trump’s nominee, Mike Selig.
- •Her initiatives have been welcomed by crypto firms, who value her practical, engaged approach to regulation.
- •Faryar Shirzad, chief policy officer at Coinbase, praised Pham’s efforts, noting that she has kept critical projects moving and welcomed input from companies on the agency’s work.
Through these moves, the CFTC is setting the stage for a more structured and transparent U.S. crypto spot market. While formal legislation remains pending, Pham’s initiative shows the agency’s commitment to ensuring investor protection and market integrity as the next chapter of crypto regulation unfolds.