Bitnomial to Launch First CFTC-Regulated Spot Crypto Trading
The exchange’s self-certified rules went into effect Friday, paving the way for spot trading in the coming days
Welcome to the Monday edition of the Crypto In America newsletter!
What you'll read: Derivatives exchange Bitnomial is preparing to launch spot crypto trading, market structure talks come down to the wire, and what we’re watching this week.
Bitnomial is set to become the first derivatives exchange in the U.S. to offer spot crypto trading, Crypto In America has learned.
The Chicago-based company filed self-certification paperwork last month under CFTC Regulation 40.6(a), a rule that allows registered designated contract markets (DCMs) to implement new rules once they certify compliance with the Commodity Exchange Act. Bitnomial’s self-certified rules cover the listing of ‘spot’ products, including retail leveraged spot under CEA 2(c)(2)(D), enabling customers to directly buy, sell, and finance digital assets on the exchange.
According to the November 13 filing, the rules officially went into effect on Friday, suggesting that spot trading could launch in the coming days.
Luke Hoersten, CEO of Bitnomial, declined to comment on the filing. A CFTC spokesperson did not immediately respond to a request for comment.
Under this framework, investors can trade leveraged spot products on a CFTC-regulated exchange without waiting for Congress to expand the agency’s authority over spot commodities. Bitnomial argued in their August comment letter that the Commodity Exchange Act already gives the CFTC clear authority to oversee leveraged spot crypto trading, writing that the Act “provides a clear and workable framework for leveraged retail crypto products without requiring complex coordination between multiple agencies.”
Language in the November filing suggests traders can also conduct non-leveraged spot transactions, which make up most retail activity on platforms like Coinbase and Kraken. However, with Congress still working on market structure legislation to clarify jurisdiction over traditional spot markets, it’s unclear whether this approach could face pushback.
The move is part of Acting Chair Caroline Pham’s broader ‘crypto sprint’ initiative, which aims to implement recommendations from the White House’s report on digital assets and follows a joint statement with the SEC confirming that registered platforms can offer certain spot crypto under existing law. It also comes as the SEC and CFTC collaborate on initiatives such as crypto and prediction markets, and as SEC Chief Counsel Mike Selig prepares to take the helm at the CFTC as chairman in the coming weeks.
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👀 What To Watch This Week
Market structure talks are coming down to the wire. This is shaping up to be a pivotal week for Senate Banking Committee staff and members racing to finalize a bipartisan market structure draft that still hasn’t been released publicly.
Senate Banking Committee Chair Tim Scott (R-SC) and Agriculture Committee Chair John Boozman (R-AR) both say they’re aiming to mark up their respective components of market structure this month. That leaves just three working weeks before Congress heads home for the holidays, marking the end of the legislative year.
As Crypto In America reported last week, the week of December 8 has been floated as a tentative Banking Committee markup target by Democratic members who’ve spoken privately with industry. But it’s unclear whether negotiators can lock down a final text in time, given the ongoing back-and-forth between Democrats and Republicans, who only started discussing legislative text a little over a month ago. If the week of the 8th slips, the week of December 15 is also in play.
On the Ag side, industry has spent the last two weeks sending feedback on the committee’s bipartisan discussion draft released last month. The draft earned early praise for going further than the House’s CLARITY Act, but also criticism for leaving key areas, like DeFi oversight and AML safeguards, largely blank.
Still, the committee has been receptive to feedback and industry meetings, according to Digital Chamber CEO Cody Carbone.
When asked about feedback on the draft legislation and potential markup timing, a committee spokeswoman said, “The committee is continuing to engage with industry stakeholders and thought leaders as we prepare for a December markup.”
Here’s what else we’re tracking this week:
Monday
9:30 AM: 21Shares Core XRP Trust is expected to begin trading on the CBOE under the ticker TOXR.
10:00 AM: ISM Manufacturing PMI is set to be released. It’s considered a key read on inflation trends by traders, especially when deciding how the Fed might act on interest rates.
The Federal Reserve is set to end quantitative tightening to stabilize financial markets amid strained liquidity, while Fed Chair Powell speaks tonight at 8 PM, potentially signaling the path for December’s rate cut.
Tuesday
9:30 AM: Grayscale Chainlink Trust ETF is to begin trading on NYSE Arca under the ticker GLNK.
10:00 AM: The Fed’s Vice Chair for Supervision Michelle Bowman will testify before the House Financial Services Committee. FDIC Chair Travis Hill, OCC Comptroller Jonathan Gould and NCUA Chair Kyle Hauptman will also testify.
1:00 PM: Boston Institutional Digital Assets Forum kicks off at the Federal Reserve Bank of Boston.
Wednesday
Binance Blockchain Week kicks off in Dubai. Crypto In America’s Eleanor Terrett will be on the ground.
Thursday
12:00 PM: The Fed’s Vice Chair for Supervision Michelle Bowman will give a speech at the Florida Bankers Association Leadership Luncheon.
Friday
8:30 AM: The Bureau of Economic Analysis will release the delayed September Personal Consumption Expenditures (PCE) price index, including core PCE data, which is the Fed’s preferred measure of inflation.
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