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CFTC To Allow Spot Trading of Crypto Assets on Regulated Futures Exchanges

By  |  August 5, 2025
CFTC To Allow Spot Trading of Crypto Assets on Regulated Futures Exchanges

The Commodities Futures Trading Commission (CFTC) announced on Monday that it would allow spot trading of crypto-asset contracts that are listed on a futures exchange that is regulated by the agency, Reuters reported. The announcement fulfills a recommendation in a report by the White House Crypto Working Group released last week that the CFTC and SEC should “immediately enable trading of digital assets at the federal level,” by clarifying rules on crypto trading, custody, and record keeping.

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    In a similar vein, SEC chair Paul Atkins last week outlined a series of crypto-related initiatives he called “Project Crypto,” including directing staff to develop guidelines for clarifying when a crypto asset qualifies as a security,” according to Reuters. Crypto traders have long resisted that designation due to the extensive disclosure rules that apply to securities under existing regulations. But Atkins indicated that most crypto assets are not securities and should be allowed to trade without the disclosure requirements.

    “This is a significant development, not just for the U.S. but for global markets,” Saad Ahmed, head of Asia Pacific at Gemini said of the CFTC announcement. “It brings crypto one step closer to the structure and standards of traditional markets – an important shift that could drive broader participation from institutions and more sophisticated market participants globally.”

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    The moves by the two agencies mark a stark turnaround from the policies of the previous administration, which was generally skeptical of crypto assets and sought to protect consumers and traders against fraud and money laundering. The SEC under the Biden administration sued Coinbase, Binance, and several other crypto exchanges alleging they were flouting securities law. But the agency has since dropped those cases.

    Related: White House Crypto Working Group Report Due on Regulating Digital Assets Market

    The actions also come as the GOP-led Congress has moved to establish a clear legal foundation for crypto trading. It passed, and President Trump has signed, the GENIUS Act creating rules for the issuance and trading of crypto stablecoins. And the House has passed the CLARITY Act to establish a regulatory structure for the crypto market, including sorting out lines of jurisdiction between the SEC and CFTC. The bill is currently pending in the Senate.

    The legislation and the agency actions represent a major victory for the crypto industry, which has long argued that existing commodity and securities laws and regulations are not good fits for crypto, and advocated for new laws tailored for digital assets.

    In addition to cryptocurrencies, the White House working group report also included extensive discussion of tokenization of financial assets, such as bank deposits, stocks, bonds, funds, and real estate.

    “The hope continues to be that a broader range of assets beyond bitcoin and ethereum entrench themselves on U.S. venues over the next 24 months, and moves like this ultimately help along that process,” Joseph Edwards, head of research at Enigma Securities, told Reuters.