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The Commodity Futures Trading Commission (CFTC) has launched a new initiative, part of its “crypto sprint,” seeking to enable trading of “spot crypto asset contracts” on CFTC-registered futures exchanges.
The initiative directly addresses recommendations from President Donald Trump’s Working Group on Digital Asset Markets (WG-DAM), which issued 18 distinct recommendations.
Acting CFTC Chair Caroline Pham stated:
“There is a clear and simple solution the CFTC can implement now.”
A spot crypto asset contract proposed under this plan would function as a listed contract, resembling a futures product but tracking current (“spot”) crypto prices on a designated contract market (DCM) registered with the CFTC.
In its usual regulatory purview, the CFTC oversees derivatives, not commodities. However, Title 7 of the Commodity Exchange Act permits the CFTC to regulate commodities (including digital assets, potentially) except in cases of fraud or market manipulation.
Public Input Requested
The CFTC specifically invited public feedback on applying Section 2(c)(2)(D) of the Commodity Exchange Act and Part 40 of its regulations.
Section 2(c)(2)(D) mandates that retail commodity transactions involving leverage (margin or financing) must occur on a CFTC-registered DCM. This could provide a regulatory pathway for leveraged, physically-settled crypto products.
Part 40 governs DCMs, covering registration, compliance, and enforcement.
Furthermore, the CFTC requested input on potential implications under the Securities Act, particularly concerning whether non-security assets, potentially qualifying as investment contracts under the Howey Test, could fall under the SEC’s regulatory framework.
Comments are due by August 18.
Focused Recommendations
The WG-DAM report specifically advised the CFTC to clarify: the definition of crypto assets under commodity law; application of registration requirements to decentralized finance entities; and provide guidance to regulated entities on permissible crypto-related activities.
Additionally, the CFTC must consider amending existing rules to accommodate blockchain-recorded derivatives.
Fifteen other recommendations targeted coordination with complementary agencies, including the SEC.
Commission Leadership Hurdle
The CFTC administration and its regulatory capacity face a challenge: currently holding only two commissioners.
Former Chair Rostin Behnam resigned in January 2025; Chair Summer Mersinger and Commissioner Christy Goldsmith Romero stepped down in May 2025.
Meanwhile, President Trump’s nominee, Brian Quintenz, remains pending Senate confirmation, after the White House intervened to delay a vote.
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