CFTC Withdraws Outdated Crypto Trading Guidance, Citing Market Evolution
The Commodity Futures Trading Commission has rescinded its 2020 interpretive guidance on cryptocurrency 'actual delivery' standards, marking a significant regulatory shift for digital asset markets. Acting Chairman Caroline D. Pham characterized the withdrawn rules as obsolete, noting they no longer reflect current trading practices or market structures.
The repealed guidance had established a 28-day window for determining whether crypto transactions qualified as spot sales or fell under futures regulations. This framework, rooted in the Commodity Exchange Act, previously influenced how platforms structured retail offerings and custody arrangements.
Market participants have long debated the practicality of the 28-day standard, particularly as institutional custody solutions and decentralized finance protocols transformed settlement processes. The CFTC's MOVE signals recognition of these technological advancements while potentially paving the way for updated regulatory clarity.