The Commodity Futures Trading Commission (CFTC) has unveiled a proposal to permit federally regulated futures exchanges to list physically settled spot cryptocurrency contracts utilizing existing legal authority. This initiative aims to streamline oversight and catalyze growth in the U.S. digital asset market.
Under the plan, Designated Contract Markets (DCMs) could offer spot crypto trading leveraging the CFTC’s established framework under the Commodity Exchange Act, bypassing the need for complex new regulations. The approach seeks to maintain regulatory efficiency while expanding market access for institutional participants.
Legal observers warn of potential jurisdictional conflicts due to overlapping oversight with the Securities and Exchange Commission (SEC). Certain cryptocurrencies might be classified as securities by the SEC, creating regulatory ambiguity that requires resolution through enhanced inter-agency coordination.
The CFTC emphasizes that effective collaboration with the SEC remains critical for the proposal’s implementation, though current coordination mechanisms between the two regulators are deemed inadequate. Stakeholders are urged to submit formal feedback by August 18.
If enacted, the framework could strengthen market integrity and accelerate the development of compliant crypto trading infrastructure across regulated U.S. exchanges.