CFTC Proposes Allowing Spot Crypto Trading on Regulated Futures Exchanges

The Commodity Futures Trading Commission (CFTC) plans to permit spot cryptocurrency trading on exchanges it already regulates, thereby expanding access to digital assets through federally registered futures markets.

CFTC Acting Chairman Caroline Pham unveiled the plan on Monday, describing it as the first step in the commission’s broader “crypto sprint.” This program aims to rapidly implement key policy recommendations from the President’s Working Group on Digital Asset Markets.

Pham framed the initiative as part of a wider effort under President Trump’s leadership to integrate digital assets into the federal regulatory framework.

She stated that the initiative would enable immediate trading of digital assets at the federal level, in coordination with the Securities and Exchange Commission’s (SEC) recently announced Project Crypto.

.@CFTCpham Launches Listed Spot Crypto Trading Initiative: https://t.co/9xe6wj4VXB

— CFTC (@CFTC) August 4, 2025

CFTC Invites Input on Spot Crypto Listings via DCMs

“There is a clear and simple solution the CFTC can implement now,” Pham said. “The Commodity Exchange Act currently requires that retail trading of commodities with leverage, margin, or financing must be conducted on a designated contract market.”

“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.”

The CFTC’s proposal would allow exchanges already registered to trade futures contracts, known as Designated Contract Markets (DCMs), to also offer spot trading for cryptocurrencies such as Bitcoin and Ethereum.

In spot trading, buyers and sellers exchange digital assets directly and immediately, contrasting with futures trading, where contracts are based on predictions of future crypto prices.

Regulators Seek Clarity on Crypto-Securities Boundary

Stakeholders have until August 18, 2025, to submit their feedback via the CFTC’s website. During this period, the agency is seeking input on how to regulate spot crypto trading, with a focus on laws governing retail commodity transactions. It is also reviewing compliance requirements for registered exchanges.

The commission is additionally seeking guidance on how its framework would interact with securities regulations, particularly in cases where crypto assets may not meet the legal definition of securities.

All submitted comments will be made public on the CFTC’s website.

Unified Crypto Framework May Merge Futures and Securities Oversight

This move signals growing coordination between the CFTC and the SEC as both agencies strive to bring clarity to crypto regulation.

Just last week, SEC Chairman Paul Atkins introduced Project Crypto, a broad initiative designed to modernize securities laws for blockchain-based assets. The initiative aims to clarify how crypto assets are classified, distributed, and traded, specifically seeking to resolve longstanding confusion surrounding the Howey test.

The Howey test is used to determine whether an asset qualifies as a security. Over time, it has become a significant hurdle for crypto companies. Consequently, many have treated their tokens as securities by default, remaining cautious due to the risk of enforcement actions.

Project Crypto is expected to provide a more tailored regulatory approach.

With the CFTC’s latest initiative, the US may be moving closer to a dual-agency framework for digital asset regulation involving both the CFTC and the SEC. This shift coincides with growing demand from institutional and retail investors for clearer, regulated access to cryptocurrencies.

If finalized, the CFTC’s plan could open the door for spot crypto trading under existing commodity laws, providing markets with greater legal certainty without the need for new legislation from Congress.

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