CFTC Seeking Public Input on Proposal to Allow Crypto Spot Trading on Exchanges

The U.S. Commodity Futures Trading Commission (#CFTC ) is seeking public input on an ambitious plan: to allow federally regulated designated contract markets (DCM) to list crypto spot trading.

Leveraging Existing Legal Framework

Acting Chair Caroline Pham stated that this initiative aims to leverage the CFTC's existing authority under the Commodity Exchange Act. She believes this approach is straightforward, swift, and effective, helping the U.S. maintain its leading position in the financial innovation space, rather than applying complex regulations like #MiCA from the EU.

This proposal aims to create a transparent and compliant crypto spot trading environment on DCM exchanges (such as CME Group), which are known for their strict standards on market integrity and customer protection. The deadline for public input is August 18.

Legal Risks and Conflict with SEC

However, this proposal is facing skepticism from legal experts. They are concerned that it may not resolve the issue of classifying digital assets as either "commodities" or "securities." According to attorney Andrew Rossow, the CFTC's designation of crypto as commodities could directly conflict with the SEC's viewpoint. This creates significant legal risk for companies and investors, who may face legal actions from the SEC in the future, even if they have complied with CFTC regulations. This lack of clarity could lead to market instability. #anhbacong