The CFTC is preparing to allow licensed exchanges to launch leveraged and margin crypto trading as early as next December.
CFTC Prepares to Greenlight Leveraged Crypto Trading on Regulated Exchanges
On November 9, Ms. Caroline Pham , Acting Chairwoman of the US Commodity Futures Trading Commission ( CFTC ), said that she is directly working with licensed exchanges to launch margin and leveraged crypto Spot Trading as early as next December. This marks the agency's biggest milestone in years in its efforts to legalize crypto trading in the US without waiting for Congress to enact new laws.
🔥 JUST IN: CFTC's Caroline Pham pushes to launch leveraged spot crypto trading on US exchanges — as early as next month.
— CoinDesk (@CoinDesk) November 9, 2025
@jesseahamilton reports. https://t.co/EBRrkiVNj3
CFTC's "Ice-Breaking" Plan
- According to CoinDesk , Ms. Caroline has directly met with many exchanges such as CME Group, Cboe Futures, ICE Futures, Coinbase Derivatives, Kalshi and Polymarket US, all of which are licensed to trade Derivative under federal law.
- The CFTC is currently working directly with individual exchanges to develop crypto Spot Trading products like Bitcoin and Ethereum that can use margin and leverage, similar to the Futures Contract mechanism but based on real assets instead of Derivative.
- If approved, these will be the first exchanges in the US to be allowed to offer leveraged crypto Spot Trading legally, transparently and under the strict supervision of the CFTC, helping investors to be protected within the official legal framework.
- Ms. Caroline Pham said:
“We cannot wait for Congress. While lawmakers are still deliberating, the CFTC is proactively using all of its available authority to quickly implement the recommendations in the Presidential Working Group on Digital Assets report. I am confident that new trading products will be launched before the end of the year.”
- This move by the CFTC marks a major turning point in how the United States approaches and regulates the cryptocurrency market.
- Previously, leveraged crypto Spot Trading was only allowed on foreign exchanges such as Binance or Bybit, forcing US investors to "jump the fence" to participate, which means they are not protected by domestic laws.
- Now that these trading products are deployed under CFTC supervision, institutional investors can use leverage to trade Bitcoin and Ethereum right on regulated exchanges in the US, all activities taking place in an environment that complies with CFTC-supervised risk management and clearing standards.
- Attorney Kris Swiatek (Seward & Kissel LLP) commented:
“Licensed exchanges offering leveraged crypto trading products will give institutional investors more peace of mind. They can expand their crypto portfolios while remaining within a transparent financial oversight system and protecting investors.”
CFTC Focus on Major Reform Under Caroline Pham
In parallel with the plan to legalize spot crypto, Caroline Pham is restructuring the entire CFTC with three main pillars:
- Paving the way for stablecoins as collateral (tokenized collateral): CFTC plans to launch a pilot in early 2026, allowing stablecoins such as USDC, USD1, RLUSD to be used as collateral in Derivative contracts and clearing.
- Establish a specialized trial unit within the enforcement division (Trial Unit): The new unit is expected to include 8–9 lawyers, including possibly former DOJ prosecutors, to enhance prosecution capabilities in violations related to digital assets.
- Restructuring and “digital acceleration” of the CFTC: Amid a series of staff departures following the Trump administration’s cuts, Caroline has canceled expensive service contracts, streamlined processes, and launched a “crypto sprint” program to accelerate the issuance of new policies. The CFTC is also drafting technical guidance to legitimize the integration of blockchain into the commodity trading system.
Personnel Situation and Power Transition at CFTC
- Caroline Pham is currently the only remaining member of the five-member CFTC, an unprecedented situation in the agency’s history. This temporarily gives her complete control over policymaking on the digital asset market in the US.
- President Donald Trump has nominated Mike Selig, who currently serves as the head of the SEC's crypto task force, to succeed Caroline. However, the Senate confirmation process is stalled due to the government shutdown, allowing her to continue in an interim leadership Vai and potentially oversee the implementation of new policies for a while longer.
- According to sources in Washington, after completing the handover of positions, Ms. Caroline Pham is expected to join cryptocurrency payment infrastructure company MoonPay as Vai Legal Officer and Chief Administrative Officer (CLO & CAO).
- This move continues the trend of former CFTC leaders moving into the crypto space, following in the footsteps of figures like Brian Quintenz (now a leader at a16z crypto) and Summer Mersinger (now CEO of Blockchain Association).
Significance and impact on the US crypto market
- Experts say this is a strong positive signal for large financial institutions, which are waiting for a clear legal framework to participate in the crypto market.
- Attorney Kris Swiatek (Seward & Kissel LLP) commented:
“By being able to trade leveraged crypto spot products on regulated exchanges, institutional investors will find it easier to expand positions in digital assets because they are protected by the same governance standards as in traditional Derivative markets.”
- Meanwhile, Cody Carbone, CEO of the Digital Chamber Association, said that the CFTC's proactive action "when Congress is not open" proves that Washington is shifting from a defensive posture to proactively integrating crypto into the US financial infrastructure.
- The move to launch leveraged crypto trading on CFTC-regulated exchanges comes after the SEC and CFTC issued a landmark joint statement earlier this month, affirming that traditional exchanges can launch trading of certain crypto spot products, including those involving leverage, margin, and direct asset trading.
- When leading exchanges such as NYSE, Nasdaq, CBOE or CME participate in Spot Trading and crypto leverage, Bitcoin, Ethereum and many other digital assets will officially stand on par with traditional stocks, bonds and commodities. This promises to create a new wave of liquidation , strongly attracting institutional Capital into the market.
- Experts say this could be the biggest turning point since the US approved a Bitcoin spot ETF. This initiative not only opens the door to new Capital flows, but also legitimizes crypto as a legitimate financial asset, allowed to be traded legally and under supervision, especially with leveraged spot crypto products, which previously only existed on unregulated exchanges.
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