The U.S. Commodity Futures Trading Commission (CFTC) plans to allow regulated leveraged spot crypto trading as soon as December, according to Acting Chair Caroline Pham. The initiative would mark a major milestone in bringing digital asset leverage products under formal U.S. oversight.
?? TODAY: CFTC Acting Chair Caroline Pham confirms efforts to bring leveraged spot crypto trading to U.S. exchanges could launch as soon as next month. pic.twitter.com/JjjG3A8RH7
— Cointelegraph (@Cointelegraph) November 9, 2025
Major platforms , including CME Group, Cboe Futures Exchange, Intercontinental Exchange (ICE), and Coinbase Derivatives , are expected to participate in the launch.
Pham said the CFTC’s move aims to ensure that retail products involving leverage, margin, or financing are traded only on registered, regulated exchanges, as required under the Commodity Exchange Act.
Strengthening Market Integrity and Attracting Institutional Investors
The initiative is part of a broader effort to position the United States as a global hub for digital asset trading. It follows recommendations made in August by the CFTC’s Digital Asset Markets Working Group, which proposed expanding oversight to cover on-exchange leveraged crypto products.
The effort has received support from SEC Commissioner Paul Atkins, who said that “offering margin-based crypto products under CFTC supervision can enhance liquidity and market transparency.”
The CFTC is developing a compliance framework for leveraged crypto spot products traded through Designated Contract Markets (DCMs) , the same regulatory structure used for commodities futures. The framework aims to attract institutional capital from pension funds, hedge funds, and asset managers, which have been seeking more regulated exposure to digital assets.
By creating standardized rules for leverage, margin, and custody, the CFTC hopes to strengthen confidence in crypto markets and mitigate risks associated with offshore, unregulated exchanges.
Building the Framework with Major Exchanges
The CFTC is currently working with CME Group, Cboe, ICE, and Coinbase Derivatives to design a rule-compliant architecture for leveraged spot crypto trading. The agency also conducted a public feedback period in August under Part 40 of CFTC regulations, inviting comments from industry participants and consumer advocates.
Officials say the new structure is intended to reduce reliance on offshore platforms and bring U.S.-based crypto trading fully within the CFTC’s supervisory perimeter. At the same time, the agency acknowledges that leverage can amplify volatility, underscoring the need for careful implementation and risk monitoring.
Looking ahead, the CFTC is preparing to pilot a new enforcement and testing unit and is exploring ways to allow stablecoins to serve as collateral in regulated transactions by 2026.
Crucially, the plan is being executed under the CFTC’s existing legal authority, without requiring new congressional legislation , a move that signals regulatory assertiveness amid continued uncertainty in U.S. crypto policy.
Industry Impact and Regulatory Outlook
Market analysts expect the reform to accelerate the migration of crypto liquidity back to the U.S., curbing the dominance of offshore exchanges like Binance and OKX. It also positions regulated players such as CME and Coinbase to expand into margin-based crypto markets , historically one of the most profitable areas of global trading.
If successful, the initiative could pave the way for a new class of regulated crypto products and attract institutional investors previously deterred by opaque market structures and counterparty risks.
