CFTC commissioner says leveraged Bitcoin trading will launch on US platforms before 2026

The U.S. Commodity Futures Trading Commission (CFTC) is finalizing a landmark framework to allow leveraged spot crypto trading on federally regulated exchanges, Commissioner Caroline Pham confirmed in an interview with CoinDesk this week.

Pham said she expects the new products to “begin trading in our markets before year’s end,” marking one of the most significant regulatory shifts for U.S. crypto markets since 2022.

The initiative will enable investors to use borrowed funds to gain exposure to actual cryptocurrencies such as Bitcoin and Ether under a structure that prioritizes federal supervision, risk controls, and investor protections.

“As we continue to work with Congress on bringing legislative clarity to these markets, we are also using existing authorities to swiftly implement recommendations in the President’s Working Group on Digital Asset Markets report,” — Caroline Pham, Commissioner, CFTC.

The CFTC’s plan would bring an activity currently dominated by offshore platforms like Binance and OKX into the U.S. regulatory perimeter, offering a safer and more transparent environment for leveraged spot crypto trading.

Bringing leverage under federal oversight

In traditional markets, leveraged trading lets participants amplify their exposure by borrowing capital from an exchange or broker. Until now, U.S. traders could only access leveraged spot crypto trading through offshore exchanges which is an arrangement that lacks federal consumer safeguards.

Pham aims to migrate this high-risk activity onto designated contract markets (DCMs), federally regulated trading venues authorized to offer commodities to U.S. participants. These include Coinbase Derivatives, Bitnomial, and established players like CME Group and Cboe Futures Exchange.

Once approved, these exchanges could introduce leveraged spot products that combine the real ownership of crypto assets with institutional-grade leverage, transparency, and compliance requirements under the Commodity Exchange Act.

“For years, U.S. traders seeking leverage on spot crypto have had to go abroad, exposing themselves to opaque practices. This move could bring that liquidity home,” — Mike Selig, Nominee for CFTC Chairman.

The CFTC’s use of its existing powers bypasses the need for new congressional legislation, a practical response to prolonged gridlock in Washington over comprehensive crypto laws.

Pham’s final push before transition

Pham, who has served as acting commissioner since early 2024, said she is accelerating several initiatives before stepping down. Her focus remains on establishing leveraged spot crypto trading rules and ensuring “a smooth transition” to the incoming CFTC chair, Mike Selig, nominated by President Trump.

“I’m excited about new products,” Pham said. “My priority is to make sure U.S. markets remain the global benchmark for safe and innovative financial instruments.”

Selig, currently a senior SEC official and key architect of its Crypto Task Force, is expected to continue Pham’s momentum once confirmed by the Senate. Under Pham’s leadership, the CFTC has worked to close regulatory gaps between commodities and digital assets, positioning itself as a lead agency for crypto spot markets.

In recent months, the agency issued new guidance permitting spot crypto contracts on registered exchanges and clarified how platforms can maintain compliance while listing digital commodities.

A unified path for crypto regulation

The CFTC’s efforts reflect a broader coordination push with the U.S. Securities and Exchange Commission (SEC). In a joint guidance issued in September, both agencies confirmed that registered exchanges can facilitate trading in certain spot commodity products, including cryptocurrencies, without conflicting jurisdictional mandates.

The statement acknowledged that regulatory uncertainty has driven innovation overseas and urged both agencies to “encourage the reversal of this trend.”

Analysts say regulated leveraged spot crypto trading could boost institutional participation in the U.S. crypto market by offering familiar, legally backed frameworks for leverage and margin.

The CFTC’s approach, grounded in existing statutory authority, sets a precedent for agile rulemaking in an industry that evolves faster than legislation. By extending oversight to leveraged spot crypto trading, the agency is not only protecting investors but also positioning the U.S. as a leader in regulated digital asset innovation.