EddieJayonCrypto
8 Aug 25
The CFTC is seeking public feedback on a proposal to allow futures exchanges to offer spot digital asset contracts under existing regulations. Acting Chair Caroline Pham stated this aligns with the Trump administration’s directive to speed up federal digital asset trading and coordinates with the SE...
The Commodity Futures Trading Commission (CFTC) is seeking public input on a proposal to allow futures exchanges to offer spot digital asset contracts under existing regulatory frameworks. Acting Chair Caroline Pham emphasized that this initiative aligns with the Trump administration’s directive to accelerate federal-level trading of digital assets, coordinating closely with the SEC’s Project Crypto. Pham highlighted that current legislation enables retail trading of commodities with leverage or margin exclusively on Designated Contract Markets (DCMs), a term referring to exchanges regulated by the CFTC for futures and options contracts.
This move follows recommendations from the White House's recent report on digital assets, which proposed extending CFTC oversight to spot markets for digital assets that don’t qualify as securities. Pham’s announcement of the CFTC’s 'crypto sprint' last week aims to rapidly implement the White House’s agenda by utilizing existing laws rather than waiting for new legislation. While the Commodity Exchange Act allows spot contract trading on DCMs, the report stresses the need for clear jurisdictional boundaries between the SEC and CFTC to avoid overlapping regulations.
One of the major unresolved issues remains the classification of digital assets as either securities or commodities, which will determine the respective agencies’ regulatory authority. Until this is clearly defined, practical application of the CFTC’s proposed framework may face challenges. At this point, the CFTC is inviting feedback from market participants and the public on its approach, with submissions open until August 18 through its official channels.