The Commodity Futures Trading Commission (CFTC) has announced an initiative aimed at enabling trading in spot crypto asset contracts that are listed on a CFTC-registered futures exchange, known as a designated contract market (DCM). The initiative is positioned as the first implementation step under the CFTC’s “crypto sprint” and is intended to begin applying recommendations from the President’s Working Group on Digital Asset Markets report. The work will focus on how spot crypto asset contracts could be listed on a DCM using existing CFTC authority, with reference to the Commodity Exchange Act requirement that retail trading of commodities involving leverage, margin, or financing be conducted on a DCM. The CFTC is seeking input on issues including Commodity Exchange Act section 2(c)(2)(D), Part 40 of CFTC regulations, and any implications under securities laws or regulations, including how an SEC framework might apply to trading of non-security assets that form part of an investment contract. Written input is requested by August 18 via comments submitted on the CFTC website, and submissions will be published on CFTC.gov.

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