US to Allow Spot Crypto Trading on Futures Exchanges

Acting CFTC Chair Caroline Pham explained that the Commodity Exchange Act requires retail commodity trading using leverage, margin, or financing to be conducted only on regulated Designated Contract Markets (DCMs).

The CFTC's proposal to allow spot crypto trading on registered futures exchanges follows recommendations from the Digital Asset Markets Working Group under President Donald Trump. Last week, the group urged the CFTC to:

• clarify which cryptocurrencies can be classified as commodities,

• outline registration requirements for DeFi market participants,

• and define how regulated entities can legally participate in the crypto industry.

“The CFTC is committed to ensuring that digital asset trading occurs at the federal level. To achieve this, we’re working with the SEC’s crypto asset group,” said Pham.

Currently, Pham leads crypto regulation at the CFTC, but she will soon be replaced by Brian Quintenz, appointed by Trump as the next CFTC Chair. Quintenz has strong ties to the crypto industry — he heads the crypto division of venture firm Andreessen Horowitz (a16z).

Earlier, Pham acknowledged that banning cryptocurrencies is no longer feasible, but warned that the agency would maintain strict oversight of the crypto market.

Recently, crypto exchange Gemini accused the CFTC of legal prosecution based on fabricated evidence from a corporate whistleblower.

See also: "Market Cap of Binance Alpha Projects Rises to $16.19 Billion Amid New Listings"

#Futures #USA

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