Caroline Pham, acting chair of the U.S. Commodity Futures Trading Commission, is in talks with regulated U.S. crypto exchanges to introduce leveraged spot cryptocurrency products. The launch could happen as soon as next month, according to a statement made by Pham yesterday (Sunday) via X.
Digital assets meet commerce in London at fmls25
In August, the CFTC launched an initiative to allow trading of spot crypto asset contracts on registered exchanges. The regulator has invited public comments on the rules governing retail trading with leverage, margin or financing.
CFTC Reviews Rules for Leveraged Crypto
Pham confirmed that she advocates for spot trading of cryptocurrencies and continues to meet with industry representatives despite the ongoing government shutdown. The regulator is also reviewing guidelines for leveraged spot crypto products.
Under the Commodity Exchange Act, a retail commodity transaction executed on a leverage or margin basis falls under the jurisdiction of the CFTC unless the transaction results in actual delivery of the commodity within 28 days. This means that leveraged crypto spot positions would only be permitted if their duration is limited to 28 days.
JUST IN: 🇺🇸 Acting CFTC Chair Caroline Pham confirms push to launch leveraged spot crypto trading on US exchanges. pic.twitter.com/ENyOiTI1om
Senate continues discussions on crypto market structure
The development comes amid broader uncertainty surrounding U.S. crypto regulations. In early October, the Securities and Exchange Commission limited its activity to emergency cases due to the shutdown.
Despite this, Senate lawmakers have reportedly continued discussions on legislation regarding crypto market structure rules.
Uncertainty over CFTC direction grows after withdrawal
Meanwhile, the White House withdrew Brian Quintenz’s nomination to head the U.S. Commodity Futures Trading Commission, ending a confirmation process that faced delays and opposition. Quintenz, a former commissioner, was named earlier this year to replace Pham.
He thanked the president and the Senate Agriculture Committee and said he would return to the private sector. The nomination was blocked due to Senate delays and industry pushback, including concerns from parts of the crypto sector.
