Acting Chair Caroline Pham has acknowledged that leveraged trading is coming
The US Commodity Futures Trading Commission (CFTC) is preparing to allow leveraged cryptocurrency trading within the country for the first time. Acting Chair Caroline Pham confirmed that she has been in discussions with regulated US crypto exchanges to launch leveraged spot trading products as early as next month. The move signals a potential expansion of crypto trading options for retail investors under a regulated framework, a significant development for the American digital asset market.
— Caroline D. Pham (@CarolineDPham) November 9, 2025
Pham stated on X that she has continued meeting with industry representatives despite the ongoing government shutdown. Her goal is to finalize guidance for leveraged spot crypto products, ensuring they align with federal laws governing commodities trading. These products would allow investors to trade cryptocurrencies with borrowed funds—similar to margin trading—but under strict limits to prevent excessive risk-taking.
The CFTC began exploring leveraged spot crypto trading in August, seeking public input on how such markets could operate safely. Under the Commodity Exchange Act, leveraged or margined retail commodity transactions fall under the CFTC’s jurisdiction unless the asset is delivered within 28 days. This means any leveraged crypto product would have to be structured to comply with the 28-day delivery rule to remain legal.
Despite the federal government’s partial shutdown since October 1, Pham and her team have continued advancing crypto-related discussions. The Senate is reportedly close to resolving the shutdown through a temporary funding bill, which could accelerate the CFTC’s plans once normal operations resume.
The effort to approve leveraged spot trading comes amid broader momentum in Washington to establish clearer crypto regulations. While the SEC has slowed its enforcement activities during the shutdown, lawmakers continue to push bills focused on digital asset market structure. Pham’s initiative suggests the CFTC is taking a proactive role in defining the future of regulated crypto trading in the US.
