CFTC to Greenlight Leveraged Spot Crypto Trading Next Month
CFTC Acting Chair Caroline Pham has confirmed that the agency will greenlight leveraged spot crypto trading in the US as early as next month. The CFTC is in talks with regulated exchanges—including CME, Cboe Futures Exchange, Coinbase Derivatives, Kalshi and Polymarket US—to launch leveraged spot crypto trading products. Under the Commodity Exchange Act, these leveraged transactions must result in actual delivery of crypto within 28 days, limiting open positions. The move builds on an August proposal on retail commodity trading with leverage, margin and financing. The CFTC plans to issue formal guidance on these products soon, using existing powers rather than waiting for new legislation. This step aims to bring institutional oversight, risk management and investor protections to onshore spot crypto markets that have largely operated offshore. Despite the ongoing US government shutdown, Senate leaders are close to a funding deal that could restore regulatory momentum. Traders should monitor forthcoming CFTC rules and the 28-day delivery limit, which may affect leverage strategies and market liquidity.
Bullish
The confirmation that the CFTC will greenlight leveraged spot crypto trading provides regulatory clarity and onshore access for institutional and retail traders. In the short term, this news is likely to boost market sentiment as traders anticipate enhanced liquidity and new products. The 28-day delivery limit under the Commodity Exchange Act may temper excessive speculation, reducing extreme volatility. Over the long term, formal guidance and institutional oversight should strengthen investor confidence and encourage capital inflows into spot crypto markets. Overall, clearer rules and risk controls are positive catalysts for price appreciation and market expansion.