CFTC's Pham: Agency Can Regulate Most Commodities

CFTC’s Broad Authority Extends to Digital Assets, Former Acting Chair Argues

Caroline D. Pham, former acting chairman of the Commodity Futures Trading Commission (CFTC), has articulated a sweeping view of the agency’s regulatory reach, asserting that nearly all commodities, including digital assets, fall under its purview without the need for new legislation from Congress.

In an interview on October 12, 2026, Pham stated that the Commodity Exchange Act (CEA), the CFTC’s foundational legislation, grants the agency jurisdiction over virtually every commodity. She specifically endorsed the CFTC’s recent proposals concerning cryptocurrency, describing them as “absolutely the kind of protection” essential for U.S. retail crypto traders. The CFTC is currently developing rules governing how Americans trade cryptocurrencies, including those involving borrowed funds.

Pham’s argument hinges on a broad interpretation of the CEA. She contends that the statute encompasses almost all commodities, with only a very limited list of exclusions, such as onions and movie box office receipts. Consequently, if an item is not on this minimal exclusion list, the CFTC possesses the authority to regulate it.

The agency issued an advanced notice of proposed rulemaking around October 5, 2026, focusing on retail commodity transactions involving crypto assets. This initial step in the rulemaking process allows the CFTC to solicit public feedback on its ideas before drafting formal regulations.

Current CFTC Chairman Michael Selig is actively promoting frameworks for retail digital asset transactions, particularly those involving margined and leveraged trading. Pham highlighted these initiatives as crucial safeguards for retail investors.

A significant development during Pham’s tenure was the launch of a digital assets pilot program in December 2025. This program utilized Bitcoin (BTC), Ether (ETH), and USD Coin (USDC) as tokenized collateral within derivatives markets.

Pham joined the CFTC as a commissioner in April 2022 and served as acting chairman from January 20, 2025, until her departure on December 22, 2025. The pilot program commenced in the final months of her acting chairmanship. The October 2026 proposals were introduced after she left the agency, under Chairman Selig’s leadership.

Pham’s time at the CFTC also coincided with a notable shift in the agency’s market enforcement strategy. CFTC enforcement actions saw a substantial decline of nearly 80% in 2025 compared to the average of the preceding decade. This reduction was accompanied by a 21% decrease in staffing by the end of the year, as the agency reoriented its approach and scaled back on certain cryptocurrency-related cases.