Spot Crypto Products are on the Way to Regulated Markets!

Commodity Futures Trading Commission (CFTC) Acting Chair Caroline Pham confirmed that several spot cryptocurrency products could be launched on U.S. exchanges next month.

Pham stated in a post on X platform in response to a report published by CoinDesk that on the basis of discussions with unnamed sources, spot cryptocurrency offerings could be coming to market.

This move comes amid a government shutdown, which has caused delays in legislation that would inhibit the CFTC's central role in regulating cryptocurrency spot markets.

“While we continue to work with Congress to clarify the laws related to these markets, we are trying to rapidly implement the recommendations found in the President’s Working Group on Financial Markets report using our existing authorities,” Pham told CoinDesk.

President Donald Trump established the President’s Working Group on Financial Markets in January to present recommendations on digital asset policies. The working group proposed in July to clarify cryptocurrency market structure rules, designating the CFTC as the primary regulator for the U.S.

Despite slow progress in legislative developments, Pham continues to take steps using current regulations.

According to CoinDesk, among the spot cryptocurrency offerings raised during Pham's discussions are leveraged products that allow investors to increase their positions by borrowing through brokers or exchanges. These products will be offered on designated contract markets, which have licenses to provide standardized futures and options contracts, as granted by the CFTC.

Designated contract markets include Cboe Digital Exchange, ICE Futures U.S., Coinbase Derivatives, Bitnomial, and prediction markets Kalshi and Polymarket. Cryptocurrency-focused exchanges such as Coinbase and Bitnomial are expected to be among the first platforms to enter the market.

These spot crypto products, which will be moved to regulated exchanges, could pave the way for greater institutional adoption of offerings that have been available on offshore exchanges for years.

It is also believed that if Pham takes over at the CFTC, Securities and Exchange Commission Crypto Task Force Chief Counsel Mike Selig will continue his pro-crypto journey. Selig has been in contact with Pham following her nomination.

It has been reported that Pham wants to take on the role of Chief Legal Officer at cryptocurrency payment company MoonPay after a new CFTC chair is appointed.