CFTC Commodities Regulation for Crypto: Bitcoin, Ethereum, and Digital Assets

By Chanté Eliaszadeh | June 2026

While the SEC dominates crypto regulatory headlines, the Commodity Futures Trading Commission wields substantial authority over digital asset markets. The CFTC regulates Bitcoin and Ethereum as commodities, oversees derivatives trading, and increasingly targets DeFi protocols operating without registration. For companies offering crypto derivatives, perpetual-style contracts, prediction markets, or leveraged trading products, CFTC compliance is not optional.

Recent enforcement actions demonstrate the CFTC’s reach. Under a December 2023 consent order, Binance was ordered to pay $2.85 billion in connection with operating an illegal derivatives exchange and evading U.S. regulations.¹ In the BitMEX matter, the CFTC imposed $130 million in penalties combined against the BitMEX entities and their three co-founders for offering unregistered crypto derivatives to U.S. customers.² And three DeFi protocols—Opyn, ZeroEx, and Deridex—faced enforcement for operating unregistered derivatives facilities and related failures.³

The message is clear: if your platform facilitates derivatives trading in digital assets, the CFTC considers you within its jurisdiction. This article explains when the CFTC regulates crypto activities, what registration obligations apply, and how to structure compliant operations.

Bitcoin and Ethereum: Confirmed Commodities

The CFTC’s foundational authority stems from classifying Bitcoin and Ethereum as commodities under the Commodity Exchange Act (CEA). This classification has major implications for how these assets can be traded, who can offer related products, and what regulations apply.

Legal Basis for Commodity Classification

The CEA defines “commodity” broadly to include “all services, rights, and interests … in which contracts for future delivery are presently or in the future dealt in” (7 U.S.C. § 1a(9)).⁴ The CFTC has consistently taken the position that virtual currencies, including Bitcoin and Ethereum, fall within this definition.

In July 2024, a federal court squarely affirmed Ether as a commodity subject to CFTC oversight. In CFTC v. Ikkurty, the U.S. District Court for the Northern District of Illinois granted summary judgment for the CFTC, holding that Bitcoin and Ethereum (along with two other tokens at issue, OHM and Klima) are commodities, and ordering restitution and disgorgement.⁵ This judicial confirmation strengthened the CFTC’s legal authority over Ethereum derivatives and over fraud touching the Ethereum spot market.

Bitcoin’s commodity status is even longer-settled. CFTC officials have treated Bitcoin as a commodity since at least the agency’s 2015 In re Coinflip order, and CFTC-regulated Bitcoin futures have traded since December 2017, when the CME and CBOE self-certified Bitcoin futures contracts.⁶

The March 2026 SEC/CFTC Joint Interpretation

In March 2026, the SEC and CFTC took the most significant coordinated step yet toward classifying digital assets. The agencies issued a joint interpretive release (SEC Release Nos. 33-11412 / 34-105020, File No. S7-2026-09; the CFTC joined via Press Release 9198-26), issued March 17, 2026 and effective March 23, 2026, that formally classified Bitcoin and Ethereum, among other assets, as “digital commodities” under a five-category taxonomy spanning the security-to-commodity spectrum.⁷ The release identifies sixteen tokens that underlie futures listed on designated contract markets, plus Algorand and LBRY Credits, as digital commodities—a non-exhaustive set rather than a closed list. For platforms structuring crypto products, this interpretation provides the clearest federal-agency statement to date that Bitcoin and Ethereum sit on the CFTC side of the line.

What Commodity Classification Means

For Spot Trading:

The CFTC does not regulate spot purchases and sales of Bitcoin or Ethereum between parties for immediate delivery. You can buy and sell these assets on spot exchanges without CFTC registration—provided you’re not offering leveraged, margined, or financed transactions to retail customers.

For Derivatives:

All derivatives on Bitcoin and Ethereum—futures, options, swaps, and leveraged products—fall under CFTC jurisdiction. Exchanges offering these products must register as Designated Contract Markets (DCMs), and intermediaries must register as Futures Commission Merchants (FCMs).

Anti-Fraud Authority:

Even in spot markets, the CFTC retains anti-fraud and anti-manipulation authority under CEA Section 6(c)(1), 7 U.S.C. § 9(1). The agency can prosecute fraudulent schemes involving crypto commodities, even without registration or derivatives trading.⁸

Beyond Bitcoin and Ethereum

While Bitcoin and Ethereum are now recognized as commodities by both judicial decision and joint agency interpretation, the classification of many other tokens remains less settled. The CFTC and SEC continue to refine the boundary across a wide range of digital assets.

As a practical matter:

• Decentralized tokens with no active development team: Likely commodities (CFTC)
• Tokens sold in fundraising rounds with profit expectations: Likely securities (SEC)
• Functional utility tokens for decentralized networks: Potentially commodities (CFTC)
• Governance tokens with equity-like rights: Likely securities (SEC)

The March 2026 SEC/CFTC joint interpretive release brought meaningful clarity by mapping named tokens across a five-category taxonomy along the security-to-commodity spectrum.⁹ The CLARITY Act, discussed below, would establish clearer statutory jurisdictional boundaries, but it is not yet law; until Congress acts, companies must continue to apply case-by-case analysis to tokens outside the named set.

CFTC-Regulated Activities: When Registration Is Required

Not every crypto business needs CFTC registration. The agency’s jurisdiction depends on what products you offer and who you offer them to.

Derivatives Trading Platforms

Designated Contract Markets (DCMs):

If you operate an exchange where users trade commodity derivatives—futures, options, swaps—you must register as a DCM under CEA Section 5, 7 U.S.C. § 7. DCM registration requires compliance with 23 core principles covering market surveillance, position limits, financial integrity, and customer protection (see 17 C.F.R. Part 38).¹⁰

Recent Development: In July 2025, Coinbase brought regulated, perpetual-style crypto futures onshore. On July 21, 2025, Coinbase Financial Markets—a CFTC-regulated DCM—launched perpetual-style futures on Bitcoin and Ethereum, with leverage of up to 10x, marking an expansion of regulated crypto derivatives products in the U.S.¹¹

Swap Execution Facilities (SEFs):

Platforms facilitating swaps trading must register as SEFs. The CFTC’s September 2023 enforcement actions against three DeFi protocols clarified that decentralized platforms are not exempt—if your protocol facilitates swaps, you need SEF registration.¹²

Critical Insight: The CFTC considers DeFi platforms subject to registration when developers retain control over protocol operations, including the ability to charge fees, upgrade smart contracts, or shut down the protocol.

Intermediaries and Service Providers

Futures Commission Merchants (FCMs):

Any person acting as an intermediary in derivatives transactions—accepting customer funds, executing trades, or clearing positions—must register as an FCM under CEA Section 4d, 7 U.S.C. § 6d(a)(1).¹³

Crypto.com describes itself as the first major crypto platform to obtain a full stack of CFTC derivatives licenses, including FCM registration. The company assembled that stack in September 2025—amending its derivatives clearing organization registration and adding FCM registration through Foris DAX Markets, with DCM registration following—enabling it to serve as an intermediary for retail and institutional customers.¹⁴

Swap Dealers (SDs):

Entities that make markets in swaps, or that hold themselves out as dealers in swaps, must register as swap dealers with the CFTC.¹⁵

Registration triggers extensive obligations:

• Capital and financial reporting requirements
• Risk management programs
• Business conduct standards
• External business conduct rules for dealing with counterparties
• Clearing and trade execution mandates for certain swaps

Leveraged Retail Commodity Transactions

CEA Section 2(c)(2)(D), 7 U.S.C. § 2(c)(2)(D) gives the CFTC jurisdiction over leveraged, margined, or financed retail commodity transactions—even in spot markets.¹⁶

Example: A platform offering Bitcoin spot trading with 10x leverage to retail customers falls under CFTC jurisdiction, even though Bitcoin spot trading is generally unregulated.

This provision has been central to CFTC enforcement actions. The CFTC alleged that BitMEX illegally offered leveraged retail commodity transactions in Bitcoin and other cryptocurrencies without registration, and the BitMEX entities were ordered to pay a $100 million civil monetary penalty.¹⁷

Who Is “Retail”?

The CEA distinguishes retail customers from “eligible contract participants” (ECPs)—a defined category that generally includes institutions and high-net-worth or sophisticated counterparties. Platforms can offer certain leveraged products to ECPs without triggering the retail commodity-transaction regime that applies when those products reach ordinary retail customers.

CFTC Enforcement Trends: Key Cases and Lessons

The CFTC has pursued aggressive enforcement against crypto platforms operating without registration, establishing clear expectations for compliance.

Binance: $2.85 Billion Resolution (2023)

Conduct at Issue:

• Operating an unregistered derivatives exchange accessible to U.S. customers
• Facilitating illegal leveraged retail commodity transactions
• Failing to implement adequate KYC/AML controls
• Allowing traders to evade compliance measures through VPNs

Penalties (December 2023 consent order):

• $1.35 billion civil monetary penalty
• $1.35 billion disgorgement
• $150 million penalty against founder Changpeng Zhao
• Compliance monitoring and extensive remedial measures

Lesson: Geofencing and VPN detection are not optional. Platforms must implement robust controls to prevent U.S. customers from accessing unregistered derivatives products.¹⁸

BitMEX: $130 Million Combined Penalties (2021-2022)

Conduct at Issue:

• Operating an unregistered FCM and DCM
• Offering illegal leveraged retail commodity transactions
• Failing to implement required AML programs
• Bank Secrecy Act compliance failures

Penalties:

• $100 million civil monetary penalty against the BitMEX entities (August 2021), of which up to $50 million was offsettable against a concurrent FinCEN action
• $30 million in penalties against the three co-founders (May 2022)
• $130 million combined

Lesson: Operating through offshore entities does not exempt a platform from U.S. regulatory obligations when it serves U.S. customers, and the individuals behind a platform can face personal liability.¹⁹

DeFi Enforcement: Opyn, ZeroEx, Deridex (2023)

Conduct at Issue:

• Operating unregistered facilities for digital-asset derivatives trading (DCM/SEF)
• Acting as intermediaries without FCM registration
• Failing to maintain required anti-money-laundering programs

The charges were broader than a single registration theory; the CFTC’s orders reached DCM/SEF and FCM registration failures together with AML deficiencies. The civil monetary penalties were $250,000 (Opyn), $200,000 (ZeroEx), and $100,000 (Deridex).²⁰

CFTC Position:

DeFi protocols are subject to registration requirements when developers retain control through:

• Fee-setting authority
• Smart contract upgrade capabilities
• Protocol shutdown or pause functions
• Treasury management or governance control

Lesson: “Decentralization” is not a magic exemption. If your team can materially alter protocol operations, the CFTC may treat you as a regulated entity.²¹

DeFi Protocols: Navigating CFTC Jurisdiction

The CFTC’s enforcement actions against DeFi protocols sent a strong signal through the industry. Many developers believed decentralized architecture immunized them from regulation. The CFTC made clear it does not, where developers retain control.

When Does the CFTC Regulate DeFi?

The CFTC applies a control test to determine whether protocol developers are responsible for compliance:

Indicators of Control:

• Admin keys allowing protocol upgrades or pauses
• Fee capture mechanisms benefiting the development team
• Governance token distributions concentrating control
• Continued marketing, promotion, or user onboarding by developers
• Treasury management or resource allocation decisions

If developers exercise material control over protocol operations, the CFTC treats the protocol as a regulated entity requiring registration.

Compliance Options for DeFi Protocols

Option 1: Register with the CFTC

Current CFTC registration frameworks were designed for centralized entities with corporate structures, boards of directors, and compliance officers. Most DeFi protocols cannot readily satisfy these requirements.

The CFTC has acknowledged that registration may not be feasible for truly decentralized protocols and has explored updated regulatory frameworks. Until those mature, registration remains practically difficult for most DeFi projects.

Option 2: Exclude U.S. Users

Many DeFi protocols implement geofencing to block U.S. IP addresses, coupled with terms of service prohibiting U.S. user access.

Effectiveness Limitations:

• VPNs allow users to bypass geoblocking
• Smart contracts on public blockchains are permissionless by design
• The CFTC may view ineffective geofencing as willful evasion

Option 3: Achieve Genuine Decentralization

If the development team genuinely relinquishes all control—no upgrade authority, no fee capture, no governance influence—the protocol may fall outside CFTC jurisdiction.

Requirements for Credible Decentralization:

• Immutable smart contracts (no upgrade mechanisms)
• Governance distributed across a large, diverse token holder base
• No single entity controlling validators, oracles, or critical infrastructure
• No ongoing marketing or promotional activities by developers
• Open-source code with no proprietary components

Reality Check: Few protocols meet this standard. Most development teams retain some level of ongoing control, whether for security patches, feature improvements, or community engagement.

Prediction Markets and Event Contracts

The CFTC regulates prediction markets as event contracts—derivatives based on the occurrence or non-occurrence of specific events. This includes political elections, sports outcomes, and other real-world occurrences.

Regulatory Framework

Event contracts must be listed on CFTC-registered exchanges (DCMs) and comply with CFTC Regulation 40.11, 17 C.F.R. § 40.11, which prohibits contracts involving:

• Terrorism, assassination, or war
• Illegal activity or gaming (with limited exceptions)
• Contracts the Commission determines to be contrary to the public interest²²

Recent Developments

September 2025 SEC-CFTC Joint Statement:

The agencies announced coordination on event contracts, including those based on securities. This collaboration aimed to provide clarity for platforms seeking to offer prediction markets responsibly.²³

CFTC Prediction Markets Roundtable:

The CFTC announced a public roundtable to develop regulatory approaches for prediction markets, including sports-related event contracts. The agency has considered updated frameworks to accommodate innovation while protecting market integrity.²⁴

Active Platforms:

• KalshiEX: CFTC-registered DCM offering event contracts
• ForecastEx: CFTC-registered DCM focused on event contracts
• Crypto.com Derivatives: Offers event contracts alongside crypto derivatives

Compliance Considerations

If your platform offers prediction markets:

• Register as a DCM before launching
• Submit event contracts under the Part 40 certification or approval process
• Implement position limits and accountability rules
• Maintain market surveillance systems to detect manipulation
• Comply with customer onboarding, KYC, and AML requirements

SEC vs. CFTC: Jurisdictional Boundaries

The SEC and CFTC share overlapping authority over digital assets, creating compliance complexity. Understanding which agency regulates your activities is critical.

Division of Authority

CFTC Regulates:

• Digital asset commodities (Bitcoin, Ethereum, and likely other decentralized tokens)
• Derivatives on any underlying asset, including securities
• Leveraged retail commodity transactions
• Fraud and manipulation in commodity markets

SEC Regulates:

• Digital asset securities (tokens meeting the Howey test)
• Offerings and sales of investment contracts
• Securities exchanges and broker-dealers
• Fraud and manipulation in securities markets

Overlapping Authority:

Both agencies can pursue fraud cases involving digital assets. The SEC focuses on investment contract fraud (promises of returns from others’ efforts), while the CFTC addresses commodities fraud (price manipulation, wash trading, misrepresentation).

The CLARITY Act and Future Reforms

Congress is considering the Digital Asset Market CLARITY Act (H.R. 3633), which would establish clearer statutory jurisdictional boundaries:

• CFTC: Spot and derivatives markets for digital commodities
• SEC: Digital asset securities meeting specific criteria

As of mid-2026, the CLARITY Act is not yet law. The House passed H.R. 3633 on July 17, 2025 (294-134), and the Senate Banking Committee advanced its version on May 14, 2026 (15-9); the bill awaits Senate floor action.²⁵ Until federal legislation is enacted, companies must continue to navigate the existing dual-regulator framework. Our earlier article, The CLARITY Act Explained: CFTC vs. SEC Jurisdiction Finally Defined, provides detailed analysis of the proposed framework.²⁶

Coordinated Regulation

The SEC and CFTC have launched joint initiatives to harmonize digital asset oversight:

September 2025 Joint Staff Statement:

The agencies issued a joint staff statement indicating that registered exchanges may, under existing law, facilitate trading of certain spot crypto asset products, signaling a shift toward regulatory coordination.²⁷

March 2026 Joint Interpretation:

The agencies’ March 2026 joint interpretive release (discussed above) classified Bitcoin, Ethereum, and other assets as digital commodities under a five-category taxonomy—the most concrete cross-agency mapping of the digital-asset landscape to date.²⁸

These efforts signal a move toward cooperation, with the potential to reduce duplicative enforcement and provide clearer compliance pathways.

CFTC Compliance Framework: Practical Checklist

Step 1: Determine Whether CFTC Jurisdiction Applies

Ask These Questions:

• Do you offer derivatives (futures, options, swaps) on digital assets?
• Do you provide leveraged, margined, or financed transactions to retail customers?
• Does your platform facilitate derivatives trading between users?
• Do you act as an intermediary, accepting customer funds or executing derivatives trades?

If YES to any: CFTC registration is likely required.

Step 2: Identify Required Registrations

Platform Operators:

• Derivatives exchange → Register as DCM
• Swaps trading platform → Register as SEF
• Prediction market → Register as DCM

Intermediaries:

• Customer-facing intermediary → Register as FCM
• Market maker in swaps → Register as Swap Dealer

Service Providers:

• Clearing organization → Register as DCO (Derivatives Clearing Organization)

Step 3: Implement Core Compliance Programs

All Registered Entities Should Maintain:

• KYC/AML Program: Customer identification, ongoing monitoring, suspicious activity reporting
• Market Surveillance: Real-time monitoring for manipulation, wash trading, layering
• Cybersecurity Controls: Incident response, data protection, business continuity
• Risk Management: Capital requirements, position limits, stress testing
• Recordkeeping: Transaction records, communications, compliance documentation

Derivatives Exchanges (DCMs) Must Comply with 23 Core Principles, including:

1. Compliance with CFTC regulations
2. Prevention of market manipulation and abusive trading
3. Fair and equitable trading
4. Position limits and accountability
5. Emergency authority to intervene in markets
6. Financial integrity of transactions
7. Designation of contract terms
8. Settlement procedures

with additional operational and governance core principles completing the set of 23.²⁹

Step 4: Obtain Legal Counsel and Regulatory Guidance

CFTC Registration Is Complex:

• Application processes can take many months
• Require detailed business plans, financial documentation, and compliance manuals
• Involve CFTC and self-regulatory-organization review
• Necessitate ongoing reporting and examination readiness

Engage Experienced CFTC Counsel:

Firms with CFTC registration experience can guide you through:

• Registration application preparation
• Compliance program design
• Regulatory interpretation and advisory requests
• Enforcement defense and settlement negotiations

Step 5: Consider Strategic Alternatives

If Full Registration Is Infeasible:

• Partner with Registered Entities: Use registered FCMs or DCMs as intermediaries
• Limit Product Offerings: Avoid derivatives and leveraged retail products
• Serve Only Eligible Contract Participants: Institutional-only business models avoid retail compliance
• Exclude U.S. Customers: Operate offshore with robust geofencing (risks remain)

Current Status and What to Watch

The CFTC’s regulatory approach to crypto continues to evolve. Here is where things stand as of mid-2026, and what companies should anticipate:

CFTC Leadership

Michael Selig was sworn in as the 16th Chairman of the CFTC on December 22, 2025, following Senate confirmation on December 18, 2025. He previously served as chief counsel of the SEC’s Crypto Task Force and as a senior advisor to SEC Chairman Paul Atkins. Earlier in 2025, under then-Acting Chairman Caroline Pham, the agency launched a Tokenized Collateral and Stablecoins Initiative exploring the use of stablecoins in derivatives markets.³⁰ Current leadership under Chairman Selig has continued the agency’s engagement with digital-asset markets.

Stablecoin Regulation and the GENIUS Act

The most consequential stablecoin development is statutory. The GENIUS Act, Pub. L. No. 119-27, signed into law on July 18, 2025, established the first comprehensive federal framework for payment stablecoins.³¹ Among other changes, the GENIUS Act amended the Commodity Exchange Act’s definition of “commodity” (7 U.S.C. § 1a(9)) to carve out permitted payment stablecoins. Companies issuing or using stablecoins in connection with derivatives activity should account for both the GENIUS Act framework and the CFTC’s separate exploration of stablecoins as collateral in derivatives markets.

Considerations going forward:

• Treatment of stablecoins used as collateral in derivatives trading
• Interaction between the GENIUS Act framework and CFTC oversight
• Reserve, disclosure, and operational requirements for permitted payment stablecoins

DeFi Enforcement Continues

The CFTC has made clear that DeFi protocols are not categorically exempt from regulation. Expect continued enforcement attention to protocols facilitating unregistered derivatives trading.

Risk Factors:

• Protocols offering perpetual swaps, leveraged tokens, or synthetic assets
• Platforms facilitating margin trading or lending in crypto derivatives
• Prediction markets operating without DCM registration

Onshore Derivatives Products

Coinbase’s 2025 launch of perpetual-style crypto futures on a U.S.-registered DCM reflects a broader trend of bringing offshore-style products onshore under CFTC oversight. The CFTC is likely to see additional innovative derivatives products, which may include:

• Options on spot Bitcoin and Ethereum ETFs (cleared beginning in late 2024)³²
• Tokenized commodity derivatives
• Cross-margined crypto and traditional derivatives portfolios

Companies with novel product ideas should consider engaging the CFTC’s fintech and innovation staff for early guidance.

Key Takeaways

1. Bitcoin and Ethereum are commodities. A federal court has so held, and the SEC and CFTC have jointly classified them as digital commodities. All derivatives on these assets fall under CFTC jurisdiction, requiring platform registration and compliance.

2. Leveraged retail trading triggers CFTC oversight. Offering margin, leverage, or financing to retail customers can require FCM and DCM registration—even for spot products.

3. DeFi is not categorically exempt. Developers who control protocol operations can be responsible for CFTC compliance, regardless of decentralized architecture.

4. Enforcement is significant. Large penalties against Binance and BitMEX demonstrate the CFTC’s commitment to enforcement. Operating without required registration is not a viable strategy.

5. Registration is complex but achievable. Platforms such as Coinbase and Crypto.com have obtained CFTC registrations, demonstrating that compliance is possible for well-resourced firms.

6. The legal landscape is shifting. The GENIUS Act is now law, the March 2026 SEC/CFTC joint interpretation has mapped key tokens, and the CLARITY Act remains pending in the Senate.

7. Early compliance creates competitive advantage. Registered entities benefit from regulatory certainty, institutional customer access, and reduced enforcement risk.

Navigate CFTC Compliance with Expert Guidance

CFTC regulation is among the most complex areas of crypto law. Registration processes, compliance obligations, and enforcement risks require specialized expertise.

Astraea Counsel advises crypto derivatives platforms, DeFi protocols, and digital asset companies on CFTC compliance strategy. We help clients assess registration obligations, design compliance programs, and navigate enforcement inquiries.

Explore our Regulatory Compliance services or contact us to discuss your CFTC compliance needs.

Related Resources

• The CLARITY Act Explained: CFTC vs. SEC Jurisdiction Finally Defined - Detailed analysis of jurisdictional framework
• The SEC’s Crypto Pivot: What It Means for Your Startup - Understanding SEC coordination with CFTC
• Digital Assets & Blockchain Legal Services - Comprehensive crypto legal counsel
• Regulatory Compliance Services - Navigate CFTC and SEC compliance
• Contact Us - Discuss your compliance strategy

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Footnotes

1. CFTC, Federal Court Enters Order Against Binance and Former CEO Changpeng Zhao Requiring Payment of $2.85 Billion to Resolve CFTC Charges, Release No. 8825-23 (Dec. 18, 2023), available at https://www.cftc.gov/PressRoom/PressReleases/8825-23. The penalties comprised a $1.35 billion civil monetary penalty, $1.35 billion in disgorgement, and a separate $150 million against Changpeng Zhao. The earlier charge was announced in CFTC Release No. 8680-23 (Mar. 27, 2023), available at https://www.cftc.gov/PressRoom/PressReleases/8680-23. ↩

2. CFTC, Federal Court Orders BitMEX to Pay $100 Million for Illegally Operating a Cryptocurrency Trading Platform and Anti-Money Laundering Violations, Release No. 8412-21 (Aug. 10, 2021), available at https://www.cftc.gov/PressRoom/PressReleases/8412-21; CFTC, Federal Court Orders BitMEX’s Three Co-Founders to Pay a Total of $30 Million for Illegally Operating a Cryptocurrency Derivatives Trading Platform, Release No. 8522-22 (May 5, 2022), available at https://www.cftc.gov/PressRoom/PressReleases/8522-22. ↩

3. CFTC, CFTC Issues Orders Against Operators of Three DeFi Protocols for Offering Illegal Digital Asset Derivatives Trading, Release No. 8774-23 (Sept. 7, 2023), available at https://www.cftc.gov/PressRoom/PressReleases/8774-23. ↩

4. Commodity Exchange Act, 7 U.S.C. § 1a(9), available at https://www.law.cornell.edu/uscode/text/7/1a. ↩

5. CFTC v. Ikkurty, No. 1:22-cv-02465 (N.D. Ill. July 1, 2024) (Rowland, J.) (granting summary judgment for the CFTC; holding Bitcoin, Ethereum, OHM, and Klima to be commodities; ordering approximately $83.7 million in restitution and approximately $36.9 million in disgorgement). See CFTC, Federal Court Orders Jafia LLC and Ravishankar Avadhanam to Pay More Than $100 Million for Digital Asset Commodity Pool Fraud, Release No. 8931-24 (2024), available at https://www.cftc.gov/PressRoom/PressReleases/8931-24. ↩

6. In re Coinflip, Inc., CFTC Docket No. 15-29 (Sept. 17, 2015) (treating Bitcoin and other virtual currencies as commodities under the CEA), available at https://www.cftc.gov/sites/default/files/idc/groups/public/@lrenforcementactions/documents/legalpleading/enfcoinfliprorder09172015.pdf. CFTC-regulated Bitcoin futures began trading in December 2017 following self-certification by the CME and CBOE. ↩

7. SEC & CFTC, Joint Interpretive Release, SEC Release Nos. 33-11412 / 34-105020, File No. S7-2026-09 (issued Mar. 17, 2026; effective Mar. 23, 2026); CFTC, CFTC Joins SEC in Joint Interpretation Classifying Certain Digital Assets (Press Release 9198-26), available at https://www.cftc.gov/PressRoom/PressReleases/9198-26. ↩

8. 7 U.S.C. § 9(1) (CEA Section 6(c)(1) anti-fraud and anti-manipulation authority), available at https://www.law.cornell.edu/uscode/text/7/9. ↩

9. SEC & CFTC, Joint Interpretive Release, SEC Release Nos. 33-11412 / 34-105020 (Mar. 17, 2026); CFTC Press Release 9198-26, available at https://www.cftc.gov/PressRoom/PressReleases/9198-26. ↩

10. 7 U.S.C. § 7 (CEA Section 5), available at https://www.law.cornell.edu/uscode/text/7/7; 17 C.F.R. Part 38 (CFTC Regulations for Designated Contract Markets), available at https://www.law.cornell.edu/cfr/text/17/part-38. ↩

11. This firm’s analysis of Coinbase’s July 21, 2025 launch of perpetual-style Bitcoin and Ethereum futures by Coinbase Financial Markets, a CFTC-registered designated contract market, with leverage of up to 10x. See, e.g., Pillsbury, CFTC Permits Listing of Perpetual Futures on BTC and ETH: A Regulatory Milestone for U.S. Crypto Derivatives (July 2025), available at https://www.pillsburylaw.com/en/news-and-insights/cftc-perpetual-futures-btc-eth-crypto-derivatives.html. ↩

12. CFTC Release No. 8774-23 (Sept. 7, 2023), available at https://www.cftc.gov/PressRoom/PressReleases/8774-23. ↩

13. 7 U.S.C. § 6d(a)(1) (CEA Section 4d), available at https://www.law.cornell.edu/uscode/text/7/6d; 17 C.F.R. Part 1 (CFTC Regulations for FCMs). ↩

14. Crypto.com, Crypto.com Becomes First Major Crypto Platform to Obtain a Full Stack of CFTC Derivatives Licenses (Sept. 2025), available at https://crypto.com/en/company-news/cryptocom-becomes-first-major-crypto-platform-to-obtain-a-full-stack-of-cftc-derivatives-licenses (vendor self-description). The “first major platform” characterization is Crypto.com’s own. ↩

15. See 7 U.S.C. § 1a(49) (definition of “swap dealer”); 17 C.F.R. § 1.3 (swap dealer registration). The CFTC, in coordination with the National Futures Association, maintains a registry of swap dealers. ↩

16. 7 U.S.C. § 2(c)(2)(D) (CEA Section 2(c)(2)(D)), available at https://www.law.cornell.edu/uscode/text/7/2. ↩

17. CFTC Release No. 8412-21 (Aug. 10, 2021), available at https://www.cftc.gov/PressRoom/PressReleases/8412-21. ↩

18. CFTC Release No. 8825-23 (Dec. 18, 2023), available at https://www.cftc.gov/PressRoom/PressReleases/8825-23. ↩

19. CFTC Release No. 8412-21 (Aug. 10, 2021); CFTC Release No. 8522-22 (May 5, 2022). The $100 million civil monetary penalty against the BitMEX entities included up to $50 million offsettable against a concurrent FinCEN action. ↩

20. CFTC Release No. 8774-23 (Sept. 7, 2023), available at https://www.cftc.gov/PressRoom/PressReleases/8774-23 (charging unregistered DCM/SEF and FCM operation together with AML failures; civil monetary penalties of $250,000, $200,000, and $100,000 against Opyn, ZeroEx, and Deridex, respectively). ↩

21. CFTC Release No. 8774-23 (Sept. 7, 2023); see also Goodwin, The CFTC’s DeFi Trifecta: Lessons and Implications for DeFi Participants (Sept. 2023), available at https://www.goodwinlaw.com/en/insights/publications/2023/09/alerts-finance-ftec-cftc-decentralized-finance-defi-lessons-implications. ↩

22. 17 C.F.R. § 40.11 (CFTC Regulation 40.11), available at https://www.law.cornell.edu/cfr/text/17/40.11. ↩

23. SEC & CFTC, Joint Statement from the Chairman of the SEC and the Acting Chairman of the CFTC (Sept. 5, 2025), available at https://www.sec.gov/newsroom/speeches-statements/joint-statement-atkins-pham-090525. ↩

24. CFTC, CFTC Announces Prediction Markets Roundtable, Release No. 9046-25 (2025), available at https://www.cftc.gov/PressRoom/PressReleases/9046-25. ↩

25. Digital Asset Market CLARITY Act, H.R. 3633, 119th Cong. (2025) (House-passed July 17, 2025, 294-134; Senate Banking Committee advanced its version May 14, 2026, 15-9; not enacted as of mid-2026), available at https://www.congress.gov/bill/119th-congress/house-bill/3633. ↩

26. The CLARITY Act Explained: CFTC vs. SEC Jurisdiction Finally Defined, Astraea Counsel (2025), available at /insights/clarity-act-cftc-sec-jurisdiction-explained. ↩

27. SEC & CFTC, SEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products (Sept. 2, 2025), available at https://www.sec.gov/newsroom/press-releases/2025-110-sec-cftc-staff-issue-joint-statement-trading-certain-spot-crypto-asset-products. ↩

28. SEC & CFTC, Joint Interpretive Release, SEC Release Nos. 33-11412 / 34-105020 (Mar. 17, 2026); CFTC Press Release 9198-26, available at https://www.cftc.gov/PressRoom/PressReleases/9198-26. ↩

29. 7 U.S.C. § 7(d) (CEA Section 5(d), Designated Contract Market core principles), available at https://www.law.cornell.edu/uscode/text/7/7; 17 C.F.R. Part 38 (implementing regulations). ↩

30. CFTC, Acting Chairman Pham Launches Tokenized Collateral and Stablecoins Initiative, Release No. 9130-25 (2025), available at https://www.cftc.gov/PressRoom/PressReleases/9130-25; CFTC, Michael Selig Sworn In as Chairman of the CFTC, Release No. 9164-25 (Dec. 22, 2025), available at https://www.cftc.gov/PressRoom/PressReleases/9164-25. ↩

31. GENIUS Act, Pub. L. No. 119-27 (July 18, 2025), available at https://www.congress.gov/bill/119th-congress/senate-bill/1582. The Act establishes the first comprehensive federal framework for payment stablecoins and amends the Commodity Exchange Act’s definition of “commodity,” 7 U.S.C. § 1a(9), to carve out permitted payment stablecoins. ↩

32. This firm’s analysis. CFTC-cleared options on spot Bitcoin exchange-traded products began in late 2024 following exchange listings and clearing arrangements. ↩