The CFTC prepares to authorize leverage crypto spot trading on regulated American platforms for the first time, marking a significant turning point for the ecosystem.
Major Regulatory Shift
Caroline Pham, acting chair of the Commodity Futures Trading Commission (CFTC), has confirmed groundbreaking news: discussions are underway to allow leverage crypto spot trading on regulated American platforms. A revolution for crypto markets in the U.S., long hampered by a lack of clarity.
So far, leveraged products were only available on offshore platforms like Binance or Bybit, beyond the reach of U.S. regulators. If this plan materializes, it would enable investors to access crypto trading with margin in an institutional environment overseen by the CFTC.
Specifically, this means giants like CME, Cboe, ICE Futures, or Coinbase Derivatives could offer spot products on bitcoin and ether while allowing traders to use leverage, for example, controlling $5,000 of BTC with only $1,000 of capital.
In a concise message posted on X, Caroline Pham confirmed with a single word, “True”, the validity of CoinDesk’s initial report. According to this, the first products could launch as early as next month, despite the administrative blockage caused by the federal government shutdown.
Legalizing Leverage Without Congress Approval
Due to Congress not passing a text granting the CFTC explicit authority over the spot market, Pham is banking on a more pragmatic strategy: leveraging the existing powers of the Commodity Exchange Act. This law requires that any commodity trading product involving leverage, margin, or financing be conducted on regulated platforms.
We work with Congress, but we also follow the recommendations of the presidential group on digital asset markets.
A Historic Opportunity for American Markets
The introduction of leveraged crypto spot on regulated markets would signify a decisive step towards fully integrating digital assets into traditional finance. In addition to providing transparency, risk standards, and investor protection, it could attract institutional capital that has largely stayed away from unregulated crypto trading.
A Tense Transition at the Helm of the CFTC
Caroline Pham is currently acting alone as the sole remaining commissioner at the CFTC, with other seats vacant. This situation gives her an unusual amount of power to drive change. However, her departure is looming: President Trump has nominated Mike Selig, chief legal counsel of the SEC’s Crypto Task Force, to succeed her.
While Selig’s appointment is pending the end of the shutdown, Pham is rumored to join MoonPay as Chief Legal and Administrative Officer once her term is over.
Towards Massive Adoption of Crypto Spot
This move aligns with the joint SEC-CFTC statement in September, stating that registered exchanges could legally offer spot trading for certain digital commodities. As Alexander Blume, CEO of Two Prime Digital Assets, summarized:
The major U.S. exchanges now have the green light to offer spot trading on key digital assets. This is the gateway to mainstream adoption.
