The U.S. Commodity Futures Trading Commission (CFTC) has officially repealed its 2020 guidance on “actual delivery” for Bitcoin and other cryptocurrencies, marking a significant shift in regulatory oversight. Acting Chair Caroline Pham announced this decision on December 11, emphasizing that the previous guidance was outdated and did not align with the current maturity level of the crypto market.
Pham stated that this move is part of a broader initiative to streamline regulations that have become overly complex, thereby encouraging crypto firms to operate within the United States. By eliminating these barriers, the agency aims to enhance protections for American investors while fostering greater access to secure U.S. markets.
The withdrawn guidance outlined specific conditions under which a leveraged or margined crypto transaction could qualify as “actual delivery,” relying on a 28-day timeframe that required buyers to have full control of the asset. This standard was established during a time of uncertainty regarding the evolution of virtual currency markets, positioning crypto in a separate category from traditional commodities.
Pham remarked that the CFTC”s experience with virtual currency derivatives and the evolution of market practices have rendered these old rules incompatible with current industry operations. The repeal allows digital assets to be regulated under the CFTC”s general, technology-neutral framework, reducing compliance burdens for exchanges looking to list new products. This change represents a step toward integrating Bitcoin and Ethereum into the mainstream financial landscape alongside traditional commodities.
Recent developments in U.S. regulatory policy have accelerated, with the CFTC permitting spot trading of cryptocurrencies on federally regulated futures exchanges just days before the guidance was rescinded. This decision is a first for the industry, providing investors with a regulated avenue for accessing digital assets.
Pham characterized this regulatory update as a significant advancement, asserting that it allows spot trading to take place on platforms that have adhered to federal regulations for decades. Moreover, it brings leveraged retail crypto transactions, which previously existed in a regulatory gray area, into a more structured environment with established market protections.
These regulatory changes are part of a comprehensive effort linked to the CFTC”s “Crypto Sprint” initiative, which is focused on exploring tokenized collateral, examining the use of stablecoins in derivatives markets, and modernizing clearing and settlement processes through blockchain technology. On December 8, the CFTC launched a pilot program permitting Bitcoin, Ethereum, and USDC to be utilized as collateral in derivatives markets, providing the agency with real-time insights into the behavior of tokenized assets in a regulated context.
During the initial three months of this pilot, futures commission merchants are restricted to accepting only these three digital assets and are required to submit weekly reports on their holdings. This structure is designed to facilitate risk monitoring while simultaneously broadening access to innovative financial tools.
The CFTC has also indicated that tokenized real-world assets, such as U.S. Treasuries and money market funds, can be assessed within the existing regulatory framework. To aid in the transition, the agency has granted no-action relief to firms seeking to accept certain non-securities digital assets as customer margin. Pham has emphasized that the overarching goal is to provide U.S. traders with safer alternatives to offshore platforms, especially in light of recent high-profile failures and losses in the crypto sector.
As the CFTC embarks on these regulatory changes, it undergoes its own leadership transition. Pham has been serving as acting chair since January and is expected to step down following the confirmation of President Donald Trump”s nominee, Michael Selig.
