The US Commodity Futures Trading Commission has launched an initiative to enable the trading of “spot crypto asset contracts” on CFTC-registered futures exchanges.
The invitation is part of the CFTC’s “crypto sprint” initiative to implement recommendations from President Donald Trump’s Working Group on Digital Asset Markets, which included 18 recommendations.
“The CFTC is full speed ahead on enabling immediate trading of digital assets at the Federal level in coordination with the SEC’s Project Crypto,” wrote the CFTC’s Acting Chair Caroline Pham in a statement on Monday.
“There is a clear and simple solution the CFTC can implement now.”
Source: Caroline Pham
A spot crypto asset contract would resemble a futures‑style, listed contract that mirrors spot crypto prices and is traded on a CFTC-registered designated contract market (DCM).
The CFTC is normally limited to regulating derivatives products rather than commodities, except in cases of fraud and market manipulation.
CFTC seeks public input
The CFTC is specifically seeking feedback on the application of section 2(c)(2)(D) of the Commodity Exchange Act and Part 40 of CFTC regulations.
Section 2(c)(2)(D) requires that retail commodity transactions involving leverage, margin, or financing be conducted on a CFTC-registered DCM — providing a legal framework for regulating leveraged spot crypto contracts.
Part 40 of the CFTC Regulations concerns rules for DCMs, including registration and compliance requirements and enforcement provisions.
The CFTC is also seeking input on potential implications under securities laws, such as how an SEC framework might apply to trading non-security assets that may constitute an investment contract.
The public comment submission period will close on Aug. 18.
18 recommendations to CFTC
The Working Group’s crypto policy recommendations report, released last week, advised the CFTC to more clearly outline how cryptocurrencies may be considered commodities; how its registration requirements would work with decentralized finance market participants; and provide guidance to CFTC-regulated entities on what they can do with crypto.
Another major task is considering how to amend rules to accommodate blockchain-based derivatives.
An additional 16 recommendations concerning the CFTC were tied to other financial agencies, such as the SEC and the Treasury.
CFTC currently short on three commissioners
The CFTC is currently operating with just two commissioners: Pham and Kristin N. Johnson, who is expected to depart later this year.
Former CFTC Chair Rostin Behnam resigned on Jan. 20, 2025, when the Trump administration took over, while Summer Mersinger and Christy Goldsmith Romero both stepped down in late May.
Meanwhile, Trump’s pick for permanent chair — Brian Quintenz — remains in limbo after the White House intervened to postpone a Senate vote on his nomination last week.
