CFTC to Launch Leveraged Spot Crypto Trading by December
Acting CFTC Chair Caroline Pham is working to launch regulated leveraged spot crypto trading on U.S. designated contract markets (DCMs) by December. In direct talks with Coinbase Derivatives, Bitnomial, CME and Cboe, the CFTC plans to offer margin-based trading of real Bitcoin (BTC) and Ether (ETH) under the Commodity Exchange Act, leveraging recommendations from the President’s Working Group.
These onshore products will provide institutional-grade risk controls, compliant financing and investor protections lacking on offshore platforms. Internally, Pham has overhauled the agency’s structure, creating a specialized enforcement trial unit and planning a tokenized collateral pilot to accept stablecoins next year.
Joint CFTC-SEC guidance issued in September clarifies compliance paths for spot crypto contracts, while these leveraged spot crypto trading initiatives aim to boost liquidity, market confidence and pave the way for a smooth transition to incoming Chair Mike Selig.
Bullish
By enabling regulated leveraged spot crypto trading for BTC and ETH under federal oversight, the CFTC reduces reliance on offshore venues and offers institutional-grade margin trading with robust investor protections. In the short term, the introduction of margin-based spot products could increase trading volumes and volatility for both Bitcoin and Ether as traders adjust to new leverage options. Over the long term, onshore margin trading and stablecoin-backed collateral pilots are likely to attract institutional capital, enhance liquidity and reinforce market confidence, fostering a more mature and resilient crypto market.