The Commodity Futures Trading Commission authorized spot cryptocurrency trading on U.S. regulated exchanges for the first time December 4, with Chicago-based Bitnomial set to begin operations the week of December 8.
Acting Chairman Caroline D. Pham announced that listed spot crypto products will trade on CFTC-registered futures exchanges, marking what she called a "historic milestone" for federally regulated digital asset markets.
The move implements recommendations from the President's Working Group on Digital Asset Markets as part of the Trump administration's push to establish America as the "crypto capital of the world."
Bitnomial's self-certified rules became effective November 28, authorizing both leveraged and non-leveraged spot crypto products on its designated contract market.
What Happened
The Chicago-based exchange will operate under the same regulatory framework as U.S. perpetuals, futures and options markets, with all orders receiving equal treatment regardless of size. Bitnomial CEO Luke Hoersten said broker intermediation and clearinghouse net settlement eliminate counterparty risks while providing capital efficiency traders need.
The platform will offer unified portfolio margining across spot, perpetuals, futures and options on a single exchange. Traders can offset risk across all product types rather than maintaining separate fully-collateralized positions across multiple venues.
Other CFTC-registered designated contract markets include Coinbase, Kalshi and Polymarket, which could follow Bitnomial's lead. The CFTC and SEC issued a joint statement clarifying that existing law permits exchanges registered with either regulator to list certain crypto commodity products with proper coordination.
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The initiative represents one of the first agenda items from the CFTC's "Crypto Sprint" to implement the administration's pro-crypto policy goals. Other components include enabling tokenized collateral such as stablecoins in derivatives markets and rulemaking to integrate blockchain technology across CFTC regulations.
Why It Matters
The approval resolves a 15-year regulatory gap following the 2008 financial crisis, when Congress required leveraged retail commodity trading to occur only on futures exchanges but the CFTC never provided regulatory clarity on implementation. Pham criticized the agency's prior "regulation by enforcement" approach that resulted in industry fines without giving Americans a safe place to trade.
The Senate is advancing confirmation proceedings for Trump nominee Mike Selig to replace Pham as CFTC chairman. The Senate Agriculture Committee approved Selig's nomination 12-11 along party lines on November 20, with a full Senate vote expected soon.
Pham plans to leave when her replacement arrives, leaving Selig as the sole member of what should be a five-person commission. The White House has not nominated additional commissioners to fill the remaining positions.
Congress continues working on crypto market structure legislation that would grant the CFTC explicit authority over spot commodity markets. Bitcoin and other major digital assets are considered commodities, but the CFTC currently lacks broad authority over spot market manipulation outside matters of fraud.
The framework enables retail and institutional traders to access leverage on federally regulated platforms rather than offshore exchanges that lack customer protection safeguards. Pham referenced recent events on offshore platforms as evidence Americans need access to regulated U.S. markets.
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