CFTC Scraps Outdated Crypto Rules in Major Market Modernization Push

The U.S. Commodity Futures Trading Commission just tore up the old playbook. In a sweeping move to catch up with the digital age, the agency is ditching legacy regulations that no longer fit the crypto market's reality.

Out with the Old, In with the Algorithmic

Gone are the analog-era frameworks. The CFTC's withdrawal signals a clear shift—acknowledging that crypto assets demand a tailored oversight approach, not a hand-me-down rulebook from traditional finance. It's a regulatory reset aimed at fostering innovation while attempting to install guardrails.

Streamlining for the Future

The action cuts bureaucratic red tape that has stifled compliant crypto derivatives development. By bypassing obsolete requirements, the Commission aims to create a clearer path for institutional participation and complex financial products built on blockchain technology. Finally, the watchdogs are trying to understand the asset they're supposed to be policing.

This isn't just a minor update; it's a foundational rewrite. The move positions the CFTC to potentially oversee a more mature, integrated digital asset market—assuming they don't just replace old complexity with new, equally convoluted rules. After all, what's a financial regulator without a fresh set of forms to fill out?

The White House issues an order mandating the CFTC to oversee digital assets

The CFTC’s sudden decision has ignited heated debates in the crypto ecosystem. In an attempt to address this controversy, Pham alleged that this move aligns with US President Donald Trump’s earlier proposals, as presented in a report by his Working Group on Digital Asset Markets. 

Following these suggestions, sources close to the situation highlighted that the White House released a detailed report on cryptocurrency over the summer. This report addressed topics such as illicit finance and tax evasion. It also mandated that the CFTC be granted the opportunity to oversee digital assets. 

Responding to this announcement, Pham  noted, “Today’s announcement demonstrates that we can make real progress to protect Americans by ensuring access to SAFE U.S. markets.”

Meanwhile, reports have noted that since TRUMP assumed the presidency of the United States, Pham has led several projects at the CFTC focused on supporting the crypto ecosystem. Some of these initiatives include the introduction of the “Crypto Sprint,” which was designed to establish clear regulations for cryptocurrencies.

To further demonstrate the commission’s efforts to back the crypto industry, the acting chair unveiled last week that  Bitnomial positioned itself as the first exchange to successfully list spot crypto products after securing approval from regulators.

Additionally, a major, regulated cryptocurrency exchange founded by the Winklevoss twins, Gemini, received clearance from the CFTC on Wednesday, December 10, allowing it to provide users with classic binary event contracts. 

As cryptocurrencies become increasingly adopted among individuals, the U.S. Office of the Comptroller of the Currency declared this week that national banks are granted permission to directly engage in “riskless principal” transactions involving digital assets.

Trump’s pro-crypto stance encourages more exposure to the crypto industry 

Regarding Bitnomial’s move to provide spot cryptocurrency products approved by regulators, analysts acknowledge that this practice demonstrates the Trump administration and federal agencies’ efforts to encourage a more positive attitude towards the crypto industry. 

Pham, on the other hand, mentioned that such a moment illustrates “a new golden age for innovation in America.” At this time, Bitnomial was about to introduce its services officially.

“The CFTC has a strong tradition of encouraging responsible innovation on futures exchanges while balancing regulatory flexibility with essential principles that protect both institutional and retail traders,” the acting chair said.

She added that this administration has developed a comprehensive plan, under the guidance of the U.S. president, to purposefully ensure the country reclaims its position as a leader in digital asset markets globally. In this plan, Pham asserted that the CFTC will play a key role.

Following the “Crypto Sprint” initiative, sources stated that this move came after the SEC and CFTC released a joint statement in September, clarifying that registered exchanges are allowed to promote the trading of certain spot commodity products, including crypto assets. 

Sign up to Bybit and start trading with $30,050 in welcome gifts