CFTC Gives Go-Ahead for Regulated Spot Crypto Trading on U.S. Exchanges

With the chokehold lifting, the U.S. Commodity Futures Trading Commission (CFTC) is allowing federally regulated U.S. futures exchanges to start trading spot cryptocurrency products for the first time. This change lets these platforms process digital asset transactions while remaining fully overseen by the regulator, creating a new avenue for regulated spot crypto trading in the U.S.

Spot Crypto Trading Gains Regulatory Backing

Acting CFTC Chair Caroline D. Pham described the move as a major step in President Trump’s plan to encourage innovation and position the United States as the “crypto capital of the world.” The approval follows guidance from the President’s Working Group on Digital Asset Markets and incorporates input from the CFTC’s Crypto Sprint alongside ongoing collaboration with the Securities and Exchange Commission.

Pham explained that the approval allows spot crypto to be traded for the first time on CFTC-registered exchanges, long seen as the benchmark for reliability and market integrity in the U.S., providing the level of customer protection Americans should expect.

Bitnomial Joins CFTC-Regulated Crypto Markets

Pham, who took on the role of acting CFTC chair in January, stated that under her leadership, “the CFTC is finally using our decades-long existing authority to work smarter and faster to protect Americans who deserve safe U.S. markets now, not offshore exchanges that lack basic safeguards against uncontrolled customer losses.” 

Meanwhile, she is expected to leave the position once a Senate-confirmed successor takes over. Michael Selig has been nominated by President Trump to lead the agency; he has cleared the committee stage and is now awaiting a full Senate vote for confirmation. However, the CFTC still has four open commissioner positions, and the Trump administration has not yet put forward candidates to fill them.

On the market side, Chicago-based Bitnomial is set to be one of the first platforms to trade under the new framework. Other exchanges on the CFTC’s list of regulated Designated Contract Markets include Coinbase, Polymarket, and Kalshi.

CFTC Faces Gaps in Crypto Oversight

Despite the recent approvals, federal regulation of crypto remains limited. Although Bitcoin and other major digital assets are considered commodities, the CFTC has only restricted powers to monitor spot market manipulation. As a result, most crypto trading occurs outside federal oversight, except in cases of deceptive practices or misconduct.

To tackle these limitations, Congress drafted legislation to give the CFTC authority over spot crypto markets as part of broader efforts to regulate cryptocurrency trading. Pham, however, noted that the agency already had some restricted authority to permit trades involving borrowed funds on its regulated futures platforms.