- CFTC plans to start regulated spot crypto trading with leverage as early as next month.
- Caroline Pham leads talks with major exchanges to expand crypto trading under US oversight.
- Leveraged spot trading may bring stronger protections for crypto investors in the United States.
Caroline Pham, the acting chair of the Commodity Futures Trading Commission (CFTC) confirmed that the agency is negotiating with controlled exchanges to implement spot crypto trading in the United States. The initiative may include leveraged trading options and could begin as early as next month.
Pham’s acknowledgment followed a recent report, which she verified through a public post. The talks come at a time when the federal government remains partially shut down, delaying several other crypto policy projects.
Discussions Involving Traditional and Crypto Exchanges
According to information available, Pham has engaged with several CFTC-regulated designated contract markets. These are large financial organizations like CME Group, Cboe Futures Exchange, and ICE Futures. Cryptocurrency native platforms such as Coinbase Derivatives, Kalshi prediction markets, and Polymarket US have also been discussed.
It is aimed at the introduction of spot crypto products, which attract margin, leverage, and financing capabilities. According to industry sources, these attempts are designed to reinforce investor protection and increase regulated crypto trading opportunities in the U.S. markets.
Shift in Regulatory Strategy
The transfer is an indication of a shift in the strategic direction of the CFTC in cryptocurrency regulation. Pham is also relying on current authorities in the Commodity Exchange Act, as opposed to Congress enacting new legislation. Current rules require that leveraged or margin-based commodity trading must occur on regulated exchanges.
By applying these provisions to digital assets, the CFTC aims to establish a framework that ensures market integrity and safeguards investors. The approach also aligns with recommendations from the President’s Working Group on Digital Asset Markets, which supports stronger oversight of crypto activities.
Potential Impact on U.S. Crypto Markets
Leveraged spot crypto trading would allow investors to borrow funds to increase their exposure to assets such as bitcoin and ether. This kind of trading exaggerates both sources of gain and losses. As an illustration, a trader leveraged five times could just have an asset worth $5,000 to only $1,000 of their own capital.
These products have long existed on offshore exchanges but without consistent regulatory oversight. Launching them on CFTC-supervised platforms would introduce formal risk controls and compliance standards to the U.S. market. Earlier CFTC joined tokenization pilots to study how tokenized assets and stablecoins work within the U.S. financial infrastructure.
The introduction of such trading products could mark the first time American investors access leveraged spot crypto under federal supervision. Although the CFTC typically operates with five commissioners, Pham is currently the only active member, giving her expanded influence over the agency’s direction. Despite the government shutdown, she continues to pursue the plan. It was also recently revealed that the SEC and CFTC are coordinating efforts to align crypto regulations and reduce overlap in oversight. Reports also indicate that she is expected to take a senior role at global crypto payments firm MoonPay once her CFTC term ends. However, the agency has not commented on the matter.
