Caroline Pham’s Confirmations on Crypto Trading

Acting Chair of the US Commodity Futures Trading Commission (CFTC), Caroline Pham, has confirmed her intent to facilitate leveraged spot cryptocurrency trading in the United States as early as next month. This initiative follows her discussions with various regulated exchanges.

In a post on X, Pham stated: “I am advocating for the approval of leveraged spot crypto trading in the US. It is crucial to move forward with the negotiations to establish this type of trading next month.”

Pham is determined to sustain her meetings with industry leaders, even amidst the ongoing government shutdown. The CFTC is contemplating issuing further guidance regarding leveraged spot crypto offerings.

This announcement correlates with the CFTC’s recent efforts to enable the exchange of spot cryptocurrency contracts, which was initially proposed in August, advocating for comments on leverage-related regulations.

Regarding legality, the Commodity Exchange Act stipulates that any retail commodity transactions conducted on a leveraged basis must be completed within a specified timeframe of 28 days, restricting the applicability of leveraged crypto positions.

Related Articles: Republican Senator Comments on Timing for Crypto Legislation

Impact of Government Shutdown

The current government shutdown, which commenced on October 1, has considerable implications, including suspension of non-essential services and employee furloughs. However, reports indicate that the shutdown may soon conclude as the Senate is evaluating resolutions to fund governmental operations.

This situation has raised concerns regarding its effect on crypto regulation its progress. Despite the shutdown, many US senators have been actively pushing for advancements in crypto market structure legislation.

US Capitol Building
The US Capitol, housing the US Congress.