CFTC to Allow Spot Crypto Trading on Futures Exchanges

The U.S. Commodity Futures Trading Commission (CFTC) has announced a new initiative aimed at allowing spot trading of cryptocurrency asset contracts on registered futures exchanges, also referred to as designated contract markets (DCM). This initiative is part of ongoing collaboration with the SEC to clarify the classification of cryptocurrencies as either securities or commodities. CFTC Acting Chairman Caroline Pham stated, "Starting today, we invite all stakeholders to help us provide regulatory clarity on listing spot crypto asset contracts on a DCM using our existing authority." Stakeholders and the public are encouraged to submit feedback on this topic by the deadline of August 18. Last week, the CFTC launched "Crypto Sprint," an initiative to implement recommendations from a recent White House digital asset report. Pham noted that the spot crypto trading program is a significant step within this program. The report suggested granting the CFTC authority over spot markets for crypto assets classified as commodities, and emphasizes collaboration with the SEC to enhance clarity for digital asset users and businesses. Pham reaffirmed that the CFTC is progressing on enabling the immediate trading of crypto at the federal level, alongside the SEC’s Project Crypto, which aims to modernize securities regulations to support the transition to blockchain technology in financial systems. SEC Chair Paul Atkins indicated that the agency will draft new rules regarding crypto distributions, custody, and trading.