The acting chair of the US Commodity Futures Trading Commission (CFTC), Caroline Pham, has confirmed ongoing discussions with regulated exchanges to introduce leveraged spot crypto trading as early as December 2025.
The move, if finalised, would mark a major shift in the US regulatory approach to crypto trading by allowing margin-based spot trading of digital assets like Bitcoin and Ethereum on CFTC-regulated platforms.
Despite the ongoing government shutdown, Pham appears determined to push the initiative forward, reflecting her broader stance on using existing regulatory powers rather than waiting for new legislation.
Caroline Pham’s Push Amid Political and Institutional Challenges
Caroline Pham’s leadership comes at a time of significant transition within the CFTC and broader US government.
The federal government shutdown has paused several crypto-related policy efforts and stalled key appointments, including the confirmation of Mike Selig, a Trump administration nominee to replace Pham as CFTC chair.
Despite these challenges, Pham remains the sole acting commissioner, effectively granting her more autonomy to direct agency priorities.
Her decision to advance leveraged spot crypto trading reflects a determination to assert the CFTC’s role in shaping digital asset markets.
Pham’s public confirmation of the initiative, including her brief “True” response to a report shared on X (formerly Twitter), underscores her confidence in the plan’s legitimacy.
In a subsequent press release, she emphasised the administration’s commitment to enabling digital asset trading at the federal level, describing the move as aligned with President Trump’s call for American leadership in crypto innovation.
Under this framework, the CFTC appears to be coordinating with the SEC’s “Project Crypto” to establish a harmonised federal stance on digital asset regulation.
The focus is not merely on enabling trading but on creating a compliant and transparent environment that could attract liquidity from offshore platforms back to US markets.
Analysts note that this effort mirrors earlier initiatives like the CME’s Bitcoin futures launch, which significantly boosted institutional participation but also contributed to higher volatility.
From a market perspective, the introduction of leveraged spot products could reshape liquidity dynamics. Increased leverage may amplify both bullish and bearish trends, while onshore availability could draw traders away from unregulated offshore venues.
Data from CoinMarketCap shows Bitcoin trading at around $105,000 with a market capitalisation exceeding $2 trillion as of early November 2025, indicating substantial market maturity compared to previous cycles.
With these figures, even modest changes in leverage availability could significantly impact market behaviour and institutional positioning.
Moreover, Pham’s upcoming move to MoonPay as Chief Legal and Administrative Officer after her CFTC tenure adds an intriguing dimension. It illustrates a growing intersection between regulatory leadership and private sector participation in crypto finance.
While her future role at MoonPay remains unrelated to current policy initiatives, it reinforces her position as a central figure shaping both the regulatory and operational aspects of digital asset adoption.
The CFTC’s initiative could, therefore, represent a turning point for US crypto regulation. By allowing leveraged spot trading under federal supervision, the agency may redefine how American investors interact with crypto assets.
This balance between accessibility and oversight could be a step toward establishing the United States as a competitive yet responsible hub for digital asset innovation.
What Leveraged Spot Crypto Trading Means for the Market
Leveraged spot trading allows investors to borrow capital to increase their exposure to digital assets without owning the full amount. For instance, a 5x leverage enables a trader to manage $5,000 worth of Bitcoin with only $1,000 in capital.
While this amplifies potential profits, it equally magnifies losses, making it a high-risk but potentially rewarding strategy.
Such trading is already commonplace in offshore markets, but the United States has so far limited leverage primarily to derivative products such as futures or perpetual contracts.
The CFTC’s plan represents a strategic expansion of its oversight. It aims to move leveraged spot products into a regulated environment where surveillance and risk management systems are already established.
Regulated exchanges currently in discussion include major players like CME Group, ICE Futures, and Cboe Futures Exchange, alongside crypto-focused entities such as Coinbase Derivatives, Kalshi prediction markets, and Polymarket.
The inclusion of both traditional and crypto-native platforms suggests a coordinated effort to balance institutional reliability with market innovation.
According to sources close to the matter, these talks involve detailed considerations around financing mechanisms, margin requirements, and investor protection protocols. Such elements are critical in ensuring that leveraged spot trading remains transparent and fair.
If successfully implemented, this could bridge the gap between traditional finance and crypto markets, providing a regulated path for institutional investors to engage in margin-based spot trading.
This initiative also positions the CFTC as a proactive regulator amid ongoing jurisdictional debates in Washington. Currently, the SEC oversees securities-related tokens, while the CFTC primarily governs commodities and derivatives.
By extending its authority under the Commodity Exchange Act to include leveraged spot markets, the CFTC effectively sidesteps the need for new congressional mandates, demonstrating a pragmatic regulatory approach.
However, critics caution that the introduction of leveraged spot trading may also introduce short-term volatility. Increased leverage often attracts speculative traders, which can drive sharper price movements.
Still, proponents argue that regulation under the CFTC would ensure stronger safeguards, such as transparent pricing and mandatory risk controls, ultimately contributing to a more mature and trustworthy trading environment.
Conclusion
Caroline Pham’s push to introduce leveraged spot crypto trading signals a major regulatory evolution in the United States.
It combines existing frameworks with forward-looking oversight, potentially enhancing liquidity and institutional participation while maintaining investor protection.
If launched in December, the initiative could reshape the balance between offshore and onshore trading, offering US-based investors regulated access to leveraged products that have long been confined to international platforms.
Despite political uncertainties and ongoing government shutdowns, the CFTC’s determination to act reflects an accelerating shift toward practical, regulation-driven integration of crypto into mainstream financial markets.