CFTC’s Caroline Pham Sets Stage for Leveraged Spot Crypto Trading
- CFTC targets December launch of leveraged spot crypto trading across regulated U.S. markets.
- Caroline Pham confirms talks with CME, Cboe, and Coinbase Derivatives for new listings.
- U.S. traders may soon gain access to 5x leveraged Bitcoin and Ethereum spot positions.
Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), Caroline Pham, has confirmed ongoing talks with regulated exchanges to launch leveraged spot cryptocurrency trading, a move that could reshape U.S. digital asset markets.
Pham validated a CoinDesk report in a post on X, responding “True” to claims that the CFTC is preparing to allow exchanges under its jurisdiction to list spot crypto products, including those offering margin and leverage, as early as next month.
This development comes even as the federal government shutdown delays other crypto policy initiatives. It reflects Pham’s push to use existing regulatory authority under the Commodity Exchange Act instead of waiting for Congress to formally expand the CFTC’s jurisdiction over spot crypto markets. Pham told CoinDesk,
As we continue to work with Congress on bringing legislative clarity to these markets, we are also using existing authorities to swiftly implement recommendations in the President’s Working Group on Digital Asset Markets report.
How Leveraged Spot Trading Could Transform the U.S. Market
Under Pham’s proposal, leveraged spot trading would let investors borrow capital to increase exposure to assets like Bitcoin and Ethereum, multiplying both gains and potential losses. With 5x leverage, a trader could control $5,000 in Bitcoin with only $1,000 of their funds, using the rest as margin financing provided by the exchange.
Currently, such products are available only on offshore platforms such as Binance and OKX, which operate without U.S. regulatory oversight. Pham’s initiative would shift this activity onto CFTC-regulated designated contract markets (DCMs), bringing institutional-level risk controls, investor protections, and compliance standards to an area long dominated by unregulated global venues.
Among the exchanges reportedly in discussions with the CFTC are CME Group, Cboe Futures Exchange, ICE Futures, and crypto-native platforms Coinbase Derivatives, Kalshi, and Polymarket US. These exchanges already hold DCM status, making them eligible to list the new leveraged products once formal approval is granted.
The CFTC’s framework would require any trading involving margin, leverage, or financing to occur on regulated exchanges, a condition that ensures retail investors are protected from excessive risk and that platforms comply with anti-manipulation and transparency standards.
Regulatory Shift and Leadership Transition
Pham’s accelerated move toward leveraged spot trading comes amid a period of transition at the CFTC. She currently serves as the agency’s sole commissioner after the other four seats were left vacant, granting her greater influence in steering policy decisions.
President Donald Trump has nominated Mike Selig, a senior SEC official and chief counsel for its Crypto Task Force, to succeed Pham as permanent chair. However, the government shutdown has delayed Senate confirmation of Selig’s appointment, leaving Pham in charge for now.
Despite the uncertainty, Pham is pushing forward. Sources familiar with the matter say she aims to have new spot crypto products trading before year’s end, leveraging her interim authority to fast-track initiatives that strengthen U.S. oversight of digital assets.
After her tenure, Pham is expected to join global payments firm MoonPay as its Chief Legal Officer and Chief Administrative Officer, though she has not publicly commented on this transition.
Related: Trump Says, “Looks Like We’re Getting Very Close to the Shutdown Ending.”
A New Era for U.S. Crypto Oversight
Pham’s plan represents one of the most significant shifts in U.S. crypto regulation to date. By bringing leveraged spot trading under federal supervision, the CFTC would effectively expand its reach beyond derivatives into real-asset crypto markets, an area previously limited by jurisdictional ambiguity.
This activity is consistent with the joint SEC-CFTC guidance that was published in September and clarified that registered exchanges can facilitate spot trading of a few kinds of commodity products, including digital assets. This announcement has prompted big exchanges to consider creating regulated spot sales related to cryptocurrencies.
Through her reliance on current legal frameworks, Pham signals a pragmatic change in the U.S. financial infrastructure’s development, which is regulatory strictness-free.
If launched successfully, leveraged spot crypto trading could offer U.S. investors a secure, transparent, and institutionally governed alternative to offshore markets. This could potentially mark the CFTC’s boldest step yet toward integrating digital assets into the nation’s regulated financial system.
