CFTC Targets Retail Crypto Clarity With New DCM Listing Initiative

TLDR:

• CFTC proposes using DCMs to regulate retail spot crypto trading under existing commodity laws.
• Public comments on the initiative remain open until August 18 on CFTC.gov.
• The plan aligns with the SEC’s regulatory efforts to close gaps in crypto market oversight.
• CFTC aims to create a clear pathway for regulated crypto trading without new legislation.

The U.S. Commodity Futures Trading Commission is stepping into the center of the crypto debate. 

Acting Chair Caroline D. Pham announced a plan that could pull spot crypto trading under its watch. The initiative aims to set clear rules for retail trading involving leverage and margin. 

Public input is open until August 18, and the CFTC wants every stakeholder to weigh in. This move signals a direct shift toward federal oversight of crypto markets.

CFTC Outlines Federal Path for Spot Crypto

Pham revealed that the CFTC will use its existing authority under the Commodity Exchange Act. Her plan focuses on listing spot crypto asset contracts on CFTC-registered designated contract markets. According to a press release, this approach would align crypto trading with the same rules that already cover other commodities.

Wu Blockchain noted that this is part of the CFTC’s broader “crypto sprint.” The agency plans to accelerate regulatory efforts while coordinating with the SEC’s “Project Crypto” to prevent gaps in oversight.

The CFTC is asking stakeholders to comment on several key areas. Feedback is requested on how listing spot crypto contracts on DCMs would work in practice. The agency also wants input on how existing rules interact with securities regulations.

All submissions will be published on CFTC.gov for public view. Interested parties have until August 18 to provide their comments.

Clearer Rules for Retail Traders

Pham stressed that retail trading of commodities involving leverage or financing already falls under DCM oversight. 

Applying that framework to crypto would create an immediate pathway for regulated trading. She has supported this approach since 2022 and is now pushing for its implementation.

Wu Blockchain pointed out that this proposal could mark a turning point. With both federal agencies moving in parallel, the regulatory landscape for crypto may start to settle.

Acting CFTC Chair Caroline D. Pham announced an initiative to list spot crypto asset contracts on CFTC-registered designated contract markets (DCMs), aiming to provide regulatory clarity on how such retail trading with leverage, margin, or financing can occur under the existing…

— Wu Blockchain (@WuBlockchain) August 4, 2025

The CFTC is positioning this as the first stage of its crypto sprint. By targeting spot crypto contracts, the commission seeks to remove uncertainty for traders and exchanges. If implemented, the plan would give crypto a federal trading structure built on existing law rather than new legislation.

The agency’s message is simple: the time to act is now. Industry feedback will shape what comes next, but the CFTC has made its direction clear.