US Commodity Futures Trading Commission Embarks on Crypto Trading Initiative
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CFTC Launches Initiative for Spot Crypto Trading
The United States Commodity Futures Trading Commission (CFTC) has unveiled a groundbreaking initiative aimed at facilitating spot cryptocurrency trading on exchanges registered with the agency. This move signals a major step towards integrating digital assets into mainstream financial markets under regulatory oversight. The CFTC, which governs the US derivatives markets including futures, swaps, and some options, is spearheading this effort.
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Announced by acting chairman Caroline D. Pham, the initiative is part of a broader strategy called the “crypto sprint,” which aims to implement recommendations from the Digital Assets Report by the President’s Working Group. This marks a significant stride in enhancing cryptocurrency trading at the federal level. “Under President Trump’s decisive leadership, the CFTC is accelerating efforts to enable immediate digital asset trading, in collaboration with the SEC’s Project Crypto,” Pham stated.
Project Crypto: A Collaborative Effort for Crypto Innovation
Project Crypto, recently introduced by the US Securities and Exchange Commission (SEC), is designed to position the United States as a leader in cryptocurrency innovation. The initiative focuses on establishing clearer regulations around token classifications, custody, and trading. Although the CFTC operates independently, it is aligning with the SEC to advance America’s status as the “crypto capital of the world.”
Pham emphasized, “The Commodity Exchange Act mandates that retail trading of commodities with leverage, margin, or financing should occur on a Designated Contract Market (DCM).” The CFTC has invited feedback from stakeholders on listing spot crypto contracts on registered futures exchanges within existing legal frameworks.
Market Sentiment and the Coinbase Premium Gap
Despite recent regulatory advancements, American institutional sentiment towards digital assets has shown bearish tendencies, as evidenced by the negative shift in the Coinbase Premium Gap. This indicator assesses the price difference of Bitcoin between Coinbase (USD pair) and Binance (USDT pair). Coinbase, preferred by large US investors, often reflects the behavior of market “whales” compared to the broader market.
A negative Coinbase Premium Gap indicates increased selling pressure or reduced buying interest, driving Bitcoin prices down on Coinbase relative to Binance. However, recent data from CryptoQuant author IT Tech suggests the metric has returned to positive territory, signaling renewed demand in the US market, particularly among institutions and major players.
Bitcoin Price Trends
Bitcoin experienced a rebound to $115,700 on Monday. However, it has faced a downturn, with prices currently settling around $114,000.
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