US Opens Door to Leveraged Spot Crypto Trading, a First Under Federal Regulation

On December 4, 2024, American traders gained access to leveraged spot cryptocurrency trading on federally regulated exchanges, marking a significant milestone for the US crypto industry. The Commodity Futures Trading Commission confirmed that spot crypto contracts will now trade on CFTC-registered futures exchanges, backed by clearinghouse protection against counterparty risk.

The decision allows American traders to access margin-based spot crypto trading—a product previously available only on offshore platforms—within the regulated framework of U.S. derivatives markets.

Previously, Americans looking for leveraged spot crypto had to use offshore platforms, which lacked the protections and transparency of US-registered exchanges. Now, this new framework brings spot crypto trading under the same structure used for futures and options contracts.

“Now, for the first time ever, spot crypto can trade on CFTC-registered exchanges that have been the gold standard for nearly a hundred years, with the customer protections and market integrity that Americans deserve,” Acting CFTC Chairman Caroline Pham said in a statement.

While platforms like Coinbase have long offered spot crypto trading, those services operate without leverage under state-level money transmitter licenses. The CFTC’s move changes the game by enabling margin-based trading under the same federal framework that governs futures and options markets, complete with clearinghouse settlement that eliminates counterparty risk.

US derivatives exchange Bitnomial Inc. announced plans to launch a leveraged retail spot crypto exchange under CFTC oversight on December 8.

“Leveraged spot crypto trading is now available under the same regulatory framework as U.S. perpetuals, futures, and options,” Bitnomial founder Luke Hoersten said. “Broker intermediation and clearinghouse net settlement eliminate counterparty risks while providing the capital efficiency traders need.”