The U.S. Commodity Futures Trading Commission (CFTC) is preparing to allow leveraged spot cryptocurrency trading on regulated American exchanges as early as next month, marking one of the most significant regulatory shifts in U.S. digital asset policy to date.
Acting Chair Caroline Pham confirmed the move in a post on X, writing “True” in response to a CoinDesk report that revealed the agency is in direct talks with multiple CFTC-regulated exchanges to launch spot crypto trading products, including margin and financing options.
She confirmed the report even as other crypto-related policymaking remains stalled amid Washington’s historic government shutdown.
CME, Cboe, Coinbase, and Others in Talks with CFTC Plan
The talks involve major financial players such as CME Group, Cboe Futures Exchange, and ICE Futures, alongside crypto-native platforms Coinbase Derivatives, Kalshi, and Polymarket U.S., to finalize details of new trading offerings that could be approved before the end of the year.
Pham told CoinDesk that the agency is “using existing authorities to swiftly implement recommendations” from the President’s Working Group on Digital Asset Markets, emphasizing that progress will continue while Congress works on broader legislative clarity for digital assets.
If implemented, the plan would bring leveraged crypto trading, long available on offshore exchanges, onto U.S.-regulated platforms for the first time.
The products would operate under full commodities law, with oversight mechanisms already used in futures and derivatives markets, providing a framework for risk management, margin requirements, and investor protections.
The plan represents a sharp turn from the CFTC’s historical caution on leveraged spot products.
Source: CFTCUntil now, retail spot trading involving leverage or margin was largely confined to offshore exchanges due to the “actual delivery” restrictions under the Commodity Exchange Act.
These rules require that leveraged commodity transactions result in actual delivery of the asset within 28 days, a standard that has long created regulatory uncertainty for crypto assets like Bitcoin and Ethereum.
By bringing such trading onto Designated Contract Markets (DCMs), the CFTC is attempting to create a regulated onshore alternative.
The approach could strengthen investor protection, improve risk management, and potentially make digital assets more attractive to institutional investors seeking exposure through regulated venues.
The upcoming leveraged products would likely focus on Bitcoin (BTC) and Ethereum (ETH), which the CFTC classifies as commodities.
CFTC’s Crypto Overhaul Marks Shift From Turf Wars to Coordination With SEC
The Commodity Futures Trading Commission’s (CFTC) push to approve leveraged spot crypto trading comes as the agency undergoes major internal changes.
Acting Chair Caroline Pham, who is expected to be replaced by SEC crypto official Mike Selig, nominated by President Donald Trump, has been restructuring the agency and advancing a “crypto sprint” to accelerate digital asset policy.
Pham has also championed a proposal to allow stablecoins to serve as tokenized collateral in derivatives markets, a move she described as a “killer app” for modernizing collateral management. The initiative is expected to enter a pilot phase early next year.
The announcement coincides with the resolution of the longest U.S. government shutdown in history, which had paralyzed financial regulators for over a month.
A new Senate deal will allow agencies such as the CFTC and SEC to resume normal operations and address a backlog of pending crypto rulemaking and spot ETF applications.
The reopening is also expected to revive legislative efforts, including the bipartisan CLARITY Act, which seeks to define how digital assets are regulated across federal agencies.
Despite the shutdown, Pham continued discussions with exchanges and financial institutions about launching new spot products, reflecting growing confidence that the CFTC already has legal authority to oversee such markets.
Her efforts follow renewed cooperation between U.S. regulators. In late September, Pham and SEC officials publicly declared an end to their long-running “turf war.” “It’s a new day,” Pham said at a roundtable with executives from Kraken, Polymarket, and Kalshi.
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