CFTC Greenlights Spot Crypto Trading on Registered Futures Exchanges

Historically, spot trading of cryptocurrencies has fallen under the jurisdiction of the Securities and Exchange Commission (SEC), while the CFTC regulated derivatives like futures and options. Under today’s decision, registered futures exchanges, known as “Designated Contract Markets” (DCMs), can list physically settled spot crypto contracts under the existing authority granted by the Commodity Exchange Act.

Acting Chair Pham described the initiative as leveraging existing statutory authority to enhance regulatory clarity without awaiting new legislation. She invited public input on how spot contracts should be listed and operated on CFTC-registered exchanges, and the comment period runs through August 18.

This approach aligns with ongoing policy developments, including recommendations from the White House’s President’s Working Group on Digital Asset Markets, the enacted GENIUS Act, and pending legislation such as the CLARITY Act, all of which support expanding the CFTC’s authority over crypto spot markets.

Acting Chair Caroline Pham said the move represents a clear realization of President Trump’s vision to make America the crypto capital of the world. She confirmed the CFTC will coordinate with SEC Chair Paul Atkins and Commissioner Hester Peirce under the broader Project Crypto initiative to expand regulatory clarity and promote crypto innovation.

In a parallel development, SEC Chair Paul Atkins outlined sweeping regulatory reforms aimed at clarifying when digital tokens qualify as securities and creating token‑specific disclosure rules and exemptions. These initiatives are intended to bring coherence to overlapping jurisdiction between the two federal regulators.

For the crypto industry, the news represents a long-sought victory. Market participants have lobbied for legislation such as the Digital Commodity Exchange Act and FIT21, which would formally assign spot crypto oversight to the CFTC. Many firms, including Coinbase, have argued that tokens like Bitcoin and Ethereum are commodities, not securities, and that CFTC oversight would enhance transparency and investor protection.

Stakeholders can submit detailed feedback through August 18 via the CFTC website. Key topics include contract design, surveillance protocols, order execution standards, investor protections, and interactions with existing securities law safeguards.

After the public comment window, CFTC staff are expected to review stakeholder feedback as part of the agency’s standard interpretive and rulemaking process. While this may inform future guidance or authorizations, no official timeline has been disclosed for when spot crypto contracts might begin trading through DCMs.

The CLARITY Act, FIT21, and related legislation have already passed or advanced significantly in Congress. These bills formally aim to divide regulatory authority: the CFTC for decentralized digital commodities, and the SEC for tokens deemed securities. Such legislation has been championed as a way to eliminate overlapping and ambiguous oversight rules.

Allowing spot trading on federally regulated exchanges offers several benefits. Futures exchanges already follow strict rules, including central limit order books, customer segregation, and surveillance protocols, boosting investor confidence. Combining spot and futures trading on a single platform could improve liquidity, price discovery, and risk management. Firms may also operate under clearer guidelines and avoid conflicting state-level regulation or inconsistent SEC enforcement actions.