Distributed switch-and-stay combining (DSSC) has been envisioned as an effective transmission technique to achieve spatial diversity in a distributed fashion, with low implementation complexity. In this paper, we take a step further to incorporate DSSC into spectrum-limited environment, where the operating nodes have to share the frequency radio spectrum with licensed users. In particular, by deploying DSSC scheme in cognitive radio networks, we have shown that the low transmit power at unlicensed users, inflicted by the peak interference power constraint at licensed users, can be alleviated. We present closed-form expressions for outage probability and spectral efficiency, enabling us to evaluate and optimize the considered network performance. Numerical and simulation results show that when the switching threshold is below the outage threshold the full diversity order can be guaranteed at the secondary networks.