CFTC’s Bold Move: Unleashing Listed Spot Crypto Trading to Reshape Markets in 2025

The Commodity Futures Trading Commission (CFTC) just dropped a regulatory bombshell—and crypto markets are bracing for impact.

Breaking the shackles of OTC chaos

Forget shady backroom deals and opaque pricing. The CFTC's new initiative forces crypto into the sunlight of listed exchanges, bringing institutional-grade oversight to wild west markets. Finally—a regulator doing something useful instead of just collecting speaker fees at conferences.

Wall Street's worst nightmare?

Traders are scrambling as transparent price discovery threatens to vaporize the fat spreads banks pocket on unregulated crypto trades. The move could funnel billions into compliant platforms overnight—if exchanges can handle the heat.

This isn't your 2021 meme coin carnival. With proper surveillance and clearing, even pension funds might stop pretending they're 'just researching' crypto exposure.

One problem remains: regulators still can't decide if crypto is a security, commodity, or their career redemption arc—but at least now they'll fail faster with better data.

Commodity Futures Trading Commission Acting Chairman Caroline D. Pham announced the CFTC will launch an initiative for trading spot crypto asset contracts that are listed on a CFTC-registered futures exchange (designated contract market or DCM). This is the first initiative in the CFTC’s crypto sprint to start implementation of the recommendations in the President’s Working Group on Digital Asset Markets report. Acting Chairman Pham announced CFTC’s crypto sprint last week. [See CFTC Press Release No. 9104-25]

“Under President Trump’s strong leadership and vision, the CFTC is full speed ahead on enabling immediate trading of digital assets at the Federal level in coordination with the SEC’s Project Crypto,” said Acting Chairman Pham. “There is a clear and simple solution the CFTC can implement now. The Commodity Exchange Act currently requires that retail trading of commodities with leverage, margin, or financing must be conducted on a DCM. Starting today, we invite all stakeholders to work with us on providing regulatory clarity on how to list spot crypto asset contracts on a DCM using our existing authority, as I have previously proposed since 2022. Together, we will make America the crypto capital of the world.”

The CFTC invites all interested stakeholders to submit feedback and suggestions on listing spot crypto asset contracts on a DCM, including section 2(c)(2)(D) of the Commodity Exchange Act, Part 40 of CFTC regulations, and whether there are any implications under the securities laws or regulations with respect to an SEC framework for trading of non-security assets that are part of an investment contract.

Members of the public may provide written input by August 18 by submitting a comment on the CFTC website. Submissions will be published on CFTC.gov. For more information, see How to Submit a Comment.

Source: CFTC