Haciyev Reşit 
Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), Caroline Pham, has confirmed that talks are underway to launch leveraged spot crypto trading on regulated exchanges. This initiative could pave the way for a broader legal framework for the crypto markets in the United States.
Green Light for Leveraged Spot Crypto Trading
Pham confirmed the ongoing discussions with regulated exchanges by stating simply, “True.” According to reports, the CFTC is in direct contact with several Designated Contract Markets (DCMs) — including CME Group, Cboe Futures Exchange, ICE Futures U.S., Coinbase Derivatives, Kalshi, and Polymarket US.
The goal of these talks is to launch spot crypto trading products involving margin, leverage, and financing within the coming month. This would mark the first-ever leveraged spot crypto trading under regulatory oversight in the U.S.
Pham stated:
“We continue to work with Congress to bring legal clarity to the digital asset markets. At the same time, we aim to use our existing authority to swiftly implement the recommendations from the President’s Working Group on Digital Assets.”
These remarks make it clear that the CFTC intends to move beyond futures markets and become directly involved in regulating spot crypto trading.
A Turning Point for U.S. Crypto Regulation
This step represents a major paradigm shift in how U.S. regulators approach the crypto sector. While the CFTC currently lacks direct authority over spot crypto markets, it aims to leverage provisions under the Commodity Exchange Act to close that gap. The Act requires that commodities traded on regulated exchanges through leverage, margin, or financing fall under CFTC oversight. Under this framework, digital assets like Bitcoin (BTC) and Ethereum (ETH) could soon become eligible for regulated spot trading.
The implementation of this system would offer U.S. investors a safer, supervised trading environment with stronger risk management and investor protection standards. Leveraged products long available on offshore exchanges — would now be transferred to CFTC-regulated platforms, marking a major step forward for market integrity and consumer safety.
How Will Leveraged Spot Trading Work?
The new products will allow investors to take leveraged positions in cryptocurrencies like Bitcoin and Ethereum. In this model, traders deposit only a portion of the total trade value as margin, while the exchange provides the remaining financing. For example:
If an investor deposits $1,000 with 5x leverage, they could trade $5,000 worth of Bitcoin. This setup magnifies both potential profits and losses. However, since these trades will occur under CFTC supervision, they will be subject to risk management protocols, auditing standards, and investor protection rules.
Leadership Changes and Political Uncertainty at the CFTC
Caroline Pham currently serves as the only active commissioner at the CFTC.
Although the commission normally consists of five members representing both political parties, the remaining seats are currently vacant, giving Pham significant decision-making authority.
President Donald Trump has nominated Mike Selig, former Chief Counsel of the SEC’s Crypto Task Force, to replace Pham. However, the government shutdown has delayed Selig’s Senate confirmation process. A previous nominee, Brian Quintenz, was reportedly removed from consideration after industry lobbying by prominent crypto figures, including a16z Crypto and Gemini co-founders Tyler and Cameron Winklevoss. After her term ends, Pham is expected to join MoonPay as Chief Legal Officer and Chief Administrative Officer.
Expanding SEC–CFTC Cooperation
This initiative aligns with the joint guidance released by the SEC and CFTC in September, which clarified that registered exchanges are not prohibited from listing certain spot commodity products, including crypto assets.
At the time, Alexander Blume, CEO of Two Prime Digital Assets, commented:
“The joint statement from the SEC and CFTC gives major U.S. exchanges the green light to offer spot trading in leading digital assets. This opens direct access to crypto markets that handle trillions of dollars.”
This regulatory alignment is viewed as part of the broader effort to harmonize U.S. crypto rules with international standards and to boost institutional participation in the digital asset sector.
A New Era for U.S. Crypto Regulation
The CFTC’s plan to introduce leveraged spot crypto trading marks a historic milestone in the institutional adoption of digital assets in the United States.
If successfully implemented, this move could enhance investor confidence and redefine the U.S.’s competitive position in the global crypto industry. All eyes are now on the Senate’s confirmation process for Mike Selig and the CFTC’s timeline for launching these new trading models.
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