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CFTC Clears Path for Spot Crypto on US Futures Exchanges
The Commodity Futures Trading Commission (CFTC) has authorized spot cryptocurrency trading on fully regulated US futures exchanges, marking the most significant expansion of federal oversight since the launch of spot Bitcoin ETFs.
Acting Chair Caroline Pham described the move as a return to using "long-standing commodity powers" to bring digital asset markets onshore. By effectively pulling spot Bitcoin and other commodities inside the futures rulebook, the agency opens the door for designated contract markets (DCMs) to list spot products directly alongside derivatives for both retail and institutional traders.
The decision is part of a coordinated push by the Trump administration to finalize a digital asset framework before the year's end, complementing the recent GENIUS and CLARITY Acts.
TradFi giants enter the ring In practice, the ruling allows traditional futures exchanges to compete directly with crypto-native platforms.
Until now, the CFTC’s remit was largely confined to derivatives, leaving spot trading to state-regulated entities like Coinbase, Kraken and Gemini, or offshore venues. By allowing spot trading on CFTC-registered exchanges, the regulator has created a pathway for incumbents like CME Group and Cboe to offer integrated spot and futures markets.
Bitnomial is set to be the first to launch under the new regime next week, offering leveraged retail spot trading cleared through its existing futures infrastructure.
The capital efficiency play The strategic threat to crypto-native exchanges is significant. Futures exchanges can now theoretically offer cross-margining - one capital pool for futures, options and cash markets. This capital efficiency is difficult for siloed crypto exchanges to match.
For professional traders and funds, the ability to trade spot and derivatives under a single CFTC-regulated umbrella could drive volume away from standalone crypto venues and neo-brokers like Robinhood.
Political Momentum The timing aligns with the White House’s broader "Crypto Sprint," which also addresses tokenized collateral and stablecoin integration. The administration is moving to stem the migration of trading volume to offshore platforms by creating a federally regulated domestic alternative.
However, jurisdictional friction remains. While the CFTC is claiming authority over spot commodities, the boundary with the Securities and Exchange Commission (SEC) regarding which tokens constitute securities versus commodities remains a point of contention, despite recent joint statements of cooperation.
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