CFTC Proposes Framework for Spot Crypto Trading on Regulated Exchanges

The U.S. Commodity Futures Trading Commission is exploring a streamlined approach to bring spot cryptocurrency trading under its oversight. Acting Chair Caroline Pham unveiled a plan that would allow designated contract markets to list physically settled crypto contracts using existing regulatory authority.

The proposal, open for public comment until August 18, sidesteps the need for new legislation by leveraging the CFTC's current oversight of derivatives markets. Pham emphasized this path offers a faster alternative to comprehensive EU-style regulations, potentially implementing oversight within 12-18 months.

Market observers note the initiative could create tension with SEC jurisdiction, particularly around the unresolved classification of digital assets as securities or commodities. The move signals the CFTC's growing assertiveness in shaping crypto regulation amid ongoing interagency turf battles.