This is actually a pretty big deal for American crypto traders. On December 4th, the CFTC opened the door for leveraged spot cryptocurrency trading on federally regulated exchanges for the first time ever. Until now, Americans who wanted margin trading had to use offshore platforms that didn’t have any real protections.
Acting CFTC Chairman Caroline Pham said this brings spot crypto under “the gold standard” that’s been around for nearly a hundred years, with actual customer protections and market integrity. The key difference is clearinghouse protection, which eliminates counterparty risk. If someone defaults, the clearinghouse still guarantees the trade.
Bitnomial Inc. announced they’re launching the first leveraged retail spot crypto exchange under CFTC oversight on December 8th. Their founder, Luke Hoersten, said it’s using the same regulatory framework as US perpetuals, futures, and options, with broker intermediation and clearinghouse settlement.
This comes alongside the GENIUS Act that Trump signed in July 2025, which created the first federal stablecoin framework. The whole approach is shifting from just fighting fraud to actually fostering innovation and keeping traders in the US instead of pushing them offshore.
Some consumer advocates are worried, though. Better Markets warned there could be confusion about which assets and exchanges are actually covered under these new rules, especially given how volatile crypto is.
Conclusion
Federal approval of leveraged spot crypto trading marks a pivotal shift toward regulated domestic alternatives, potentially reshaping market dynamics as billions in offshore trading volume may migrate to CFTC-supervised US exchanges.
Also Read: Upbit Halts Trading
