Cadwalader Logo
Link to home page
Filters »
Search
Cabinet News - Research and commentary on regulatory and other financial services topics. Cabinet News - Research and commentary on regulatory and other financial services topics. Cabinet News - Research and commentary on regulatory and other financial services topics.
Search
Filters »
CFTC Authorizes Spot Crypto Trading on DCMs
December 4, 2025
Profile photo of contributor Peter Y. Malyshev
Partner | Financial Regulation

On December 4, 2025 Commodity Futures Trading Commission (“CFTC”) Acting Chairman Caroline D. Pham announced that, for the first time, CFTC-regulated commodity exchanges (also known as designated contract markets (“DCMs”)) have been authorized to list and facilitate trading in “spot” cryptocurrency contracts. 

“Spot” contracts are generally understood to be contracts that settle within two business days, but in some illiquid markets these contracts may not settle for a period of 28 days and still remain “spot.” At this time, it is expected that at least one DCM has been authorized by the CFTC to list these contracts on a leveraged basis and clear them through a CFTC-registered derivatives clearing organization (“DCO”) for retail participants. This authorization comes shortly after the CFTC finished collecting comments in relation to its Crypto Spring project which launched on August 1, 2025, and in response to the President’s Working Group on Digital Asset Markets consultation.

It is expected that several other DCMs will follow suit, however, the CFTC will most likely have to follow up with a set of guidance and possible rule amendments to ensure that this new type of traded contracts fits within its regulations as well as the existing procedures of futures commission merchants and introducing brokers, and the rules promulgated by the National Futures Association.

Search
Filters »

Recent Issues

December 4, 2025
November 20, 2025
All Issues »
© 2025 | Notices | Manage Subscription | Contacts