On August 4, 2025, CFTC Acting Chairman Caroline D. Pham announced a new initiative to facilitate trading of spot crypto asset contracts listed on a CFTC-registered futures exchange (i.e., a designated contract market or DCM). This initiative marks the first significant step in the CFTC’s “crypto sprint,” aimed at implementing recommendations from the President’s Working Group on Digital Asset Markets (PWG) report.
Acting Chairman Pham emphasized the CFTC’s goal of “enabling immediate trading of digital assets at the Federal level in coordination with the SEC’s Project Crypto.” In this regard, the CFTC specifically invites public feedback and suggestions on listing spot crypto asset contracts on a DCM, including on section 2(c)(2)(D) of the CEA (requiring that retail leveraged or margined commodity transactions occur on a DCM), Part 40 of CFTC regulations (governing DCM rulemaking), and any implications related to securities laws or SEC frameworks involving trading of non-security assets that form part of investment contracts. Comments must be submitted by August 18, 2025.
In parallel remarks introducing the SEC’s “Project Crypto,” SEC Chairman Paul Atkins stated that he has directed SEC staff to evaluate the use of the SEC’s existing authority to permit “non-security crypto assets that are subject to an investment contract” to trade on venues not registered with the SEC. Chairman Atkins emphasized that such an approach would “clear[] the way for CFTC-regulated platforms to offer these products with margin capabilities,” thereby “unlocking even greater liquidity for these assets.”
Stakeholders, including digital asset issuers, trading platforms, financial institutions, and investors, are encouraged to participate in the comment process. If you would be interested in discussing these issues, or in hearing our views, please reach out to any of your contacts at Sullivan & Cromwell LLP.