The CFTC is pushing for the introduction of cryptocurrency spot leverage trading on regulated trading platforms

On November 10th, Caroline Pham, the acting chair of the U.S. Commodity Futures Trading Commission (CFTC), confirmed a previous report. She stated that the agency is engaged in direct discussions with regulated trading platforms and is planning to launch cryptocurrency spot trading, including leverage products, as early as next month. Despite the current federal government "shutdown" caused by budget issues and the hindrance to the progress of other cryptocurrency-related policies, the plan is still advancing. Pham has held discussions with several CFTC-regulated Designated Contract Markets (DCMs). These include financial giants such as the CME, Cboe Futures Exchange, ICE Futures Exchange, as well as crypto-native platforms like Coinbase Derivatives and prediction markets like Kalshi and Polymarket US. The discussions focused on the launch of crypto spot trading products with margin, leverage, and financing features. In an interview, Pham said, "While we continue to work with Congress to bring legislative clarity to these markets, we are also making use of existing authorities to promptly implement the relevant recommendations from the President's Working Group on Financial Markets report." This move represents a significant change in the approach of U.S. regulatory agencies in overseeing the crypto market. Until Congress formally grants the CFTC explicit regulatory authority over the crypto spot market, Pham is choosing to rely on existing provisions in the Commodity Exchange Act. According to this act, all retail commodity transactions involving leverage, margin, or financing must take place on regulated exchanges.