Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
On December 4, 2024, US traders gained access to leveraged cryptocurrency trading on exchanges regulated by the federal government, marking a milestone for the US crypto industry. The Commodity Futures Trading Commission has confirmed that spot cryptocurrency contracts will now be traded on CFTC-registered exchanges, backed by clearinghouse protection against counterparty risk.
The decision allows US traders to access crypto spot trading on margin – a product previously only available on offshore platforms – within the regulated framework of US derivatives markets.
Sponsored
Sponsored
Federal regulation expands to include spot cryptocurrency markets
Previously, Americans seeking leverage in spot cryptocurrencies were forced to use offshore platforms, which lacked the protections and transparency found in US-registered exchanges. Now, this new framework brings spot cryptocurrency trading under the same structure used for futures and options contracts.
CFTC Chairwoman Carolyn Pham said in a statement, “Now, for the first time, spot cryptocurrencies can be traded on CFTC-registered exchanges that have been the gold standard for nearly a hundred years, with the customer protection and market integrity that Americans deserve.”
While platforms like Coinbase Having offered spot cryptocurrency trading for a long time, these services operate without leverage under state-level financial operator licenses. The CFTC’s change would change the equation, allowing margin-based trading within the same federal framework that governs the futures and options markets, complete with clearinghouse liquidity that eliminates counterparty risk.
The American Derivatives Exchange announced Bitnomial Inc. About the plans To launch a spot tokenized cryptocurrency exchange under CFTC supervision on December 8th.
Founder said Bitnomial Luke Hoersten, “Leveraged spot crypto trading is now available under the same regulatory framework as derivatives ​​and options futures in the United States brokerage intervention for brokers and clearinghouse net settlement eliminates counterparty risk while providing the capital efficiency that traders need”.
Sponsored
Sponsored
Pham stressed the importance of offering local alternatives to offshore platforms. “Recent events on offshore exchanges have shown how essential it is for Americans to have more choices and access to safe and regulated American markets,” he said.
The move closes a long-standing gap in cryptocurrency regulation in the United States. Since 2017, Bitcoin futures and options have been traded and ethereum on CFTC-registered exchanges, but leveraged spot trading remained unregulated. Many traders avoid leverage or take the risks of using unregulated foreign services.
Clearinghouse protection now reduces the counterparty risk of spot crypto trading on margin, a vital safeguard that has been absent in many offshore exchanges. The clearinghouse acts as a central intermediary that guarantees operations even if it is a default entity, reducing systemic risk and increasing trust.
Sponsored
Sponsored
The legislative framework supports the growth of digital assets
This regulatory progress coincides with legislative measures to clarify the rules for digital assets. The Trump administration supported the GENIUS program and the CLARITY Act to create dedicated regulation for digital assets. Sign up Law of Genius In July 2025, he established the first federal framework for stablecoins, which requires 100% reserves and monthly public disclosures.
These laws signal a clear shift from the Biden administration’s focus on controls against fraud and money laundering in cryptocurrencies. Policymakers now aim to protect consumers and innovate a new approach, positioning the United States as a global leader in digital assets rather than pushing the sector offshore.
The CFTC has also explored allowing token collateral, such as stablecoins, for derivatives margin requirements. This integration will allow traders to use digital assets as collateral, not just cash. However, the agency is proceeding cautiously, seeking public feedback before making major changes.
Sponsored
Sponsored
Despite the progress, some consumer advocates have expressed concerns. Advocacy group Better Markets has warned of potential confusion among retail investors over which digital assets and exchanges are covered by the new rules. They noted that unclear guidelines can mislead clients about the risks of leveraged trading in cryptocurrencies, especially given the volatility of the sector.
Market implications and prospects
The introduction of federally regulated leveraged spot trading may shift US trading volumes from offshore platforms to domestic platforms. Until now, third-party exchanges such as Binance, OKX and Paybit have dominated this market. These platforms attract billions of dollars in daily trading volume from Americans looking for leverage. With oversight from the CFTC, US-based alternatives can attract traders looking for legal certainty and institutional investors looking for compliance.
This regulatory approach brings the credibility and investor protection that the United States has gained over nearly a century of financial regulation. Exchanges registered with the CFTC are subject to approved rules regarding position limits, market manipulation and the protection of client funds. These guarantees are vital in times of market stress. On the other hand, foreign exchanges have faced liquidity crises and withdrawal freezes.
However, questions remain about how the new system will work. The CFTC has not announced which cryptocurrencies qualify for leveraged spot trading or the leverage ratios allowed. These decisions can significantly influence the attractiveness of local products versus offshore platforms, which often offer more than 100x leverage The best digital currencies.
