Acting Commodities Futures Trading Commission (CFTC) Chairman Caroline Pham is pushing for the launch of leveraged spot crypto trading as soon as next month. She has already held direct talks with regulated exchanges to bring these products to market.
Speaking to CoinDesk, Pham said she expects the new products to “begin trading in our markets before year’s end.” She added, “As we continue to work with Congress on bringing legislative clarity to these markets, we are also using existing authorities to swiftly implement recommendations in the President’s Working Group on Digital Asset Markets report.”
### What is Leveraged Spot Crypto Trading?
Leveraged spot crypto trading allows investors to use borrowed money to increase their exposure to actual cryptocurrencies like Bitcoin or Ether. Unlike speculative contracts that bet on future prices, leveraged spot trading involves buying and selling the real crypto asset itself.
Traders put up a fraction of the trade’s value as margin, with the remainder financed by the exchange or broker.
### Current Landscape and Pham’s Vision
Presently, U.S. crypto traders can access leveraged trading primarily through offshore platforms such as Binance or OKX. However, these platforms operate without the regulatory oversight and investor protections provided by federal agencies.
Pham aims to bring leveraged spot trading to regulated U.S. exchanges. This move would allow investors to trade spot assets with leverage under well-defined rules and supervision, ensuring institutional-grade oversight, risk management standards, and robust investor protections.
These products would be offered on Designated Contract Markets (DCMs)—federally regulated exchanges authorized to provide commodity trading to U.S. participants.
### Expected Market Participants
Exchanges already active in crypto markets are expected to act quickly once the regulatory framework is formalized. Crypto-native firms holding DCM status include Coinbase Derivatives and Bitnomial. Other established venues such as CME and Cboe Futures Exchange may also participate in launching these leveraged spot offerings.
### Leadership Transition and Regulatory Strategy
Pham expressed excitement about the new products, noting her efforts to ensure “a smooth transition for President Trump’s nominee for the permanent CFTC chairman.” Trump has nominated Mike Selig, a senior SEC official and key architect of the SEC’s Crypto Task Force, to succeed Pham upon Senate confirmation.
With limited time left in her interim role, Pham has fast-tracked several major policy initiatives instead of waiting for congressional action. She is relying on existing regulations like the Commodity Exchange Act, which mandates that all retail commodity transactions involving leverage, margin, or financing occur on federally regulated exchanges.
### CFTC’s Push for Crypto Adoption
Under Pham’s leadership and with support from a crypto-forward administration, the CFTC has moved quickly to bring regulatory clarity to digital assets.
Earlier this year, the CFTC issued guidance permitting spot crypto contracts to trade on federally registered exchanges. This laid the groundwork for regulated platforms to offer real-asset crypto products featuring enhanced transparency and compliance.
More recently, in September, the CFTC and the SEC released joint guidance clarifying that exchanges registered with either agency are not prohibited from facilitating trading in certain spot commodity products, including cryptocurrencies.
An excerpt from their joint statement read:
*“The United States has long been the home of financial innovation, but recently, novel products have been driven overseas by fragmented oversight and legal uncertainty. The SEC and the CFTC should encourage the reversal of this trend.”*
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With these efforts, the CFTC aims to foster safer, regulated access to leveraged spot crypto trading within the U.S., protecting investors while supporting financial innovation.
https://bitcoinethereumnews.com/crypto/cftcs-caroline-pham-targets-december-launch-for-leveraged-spot-crypto-trading/
