TLDR The CFTC has withdrawn its 2020 guidance on “actual delivery” of crypto in commodity transactions Acting Chairman Caroline Pham scrapped the rules followingTLDR The CFTC has withdrawn its 2020 guidance on “actual delivery” of crypto in commodity transactions Acting Chairman Caroline Pham scrapped the rules following

Crypto Exchanges Get More Freedom as CFTC Drops Delivery Rules

2025/12/12 15:47

TLDR

  • The CFTC has withdrawn its 2020 guidance on “actual delivery” of crypto in commodity transactions
  • Acting Chairman Caroline Pham scrapped the rules following recommendations from President Trump’s crypto working group
  • The old guidance made it harder for exchanges to offer margin trading unless delivery occurred within 28 days
  • Experts say the move gives exchanges more flexibility but warn the guidance could change with new leadership
  • The CFTC cited need to reevaluate guidance after five years of developments in crypto spot markets

The U.S. Commodity Futures Trading Commission has removed its guidance on how cryptocurrency is delivered in commodity transactions. Acting Chairman Caroline Pham announced the withdrawal on Thursday.

The guidance was first created in March 2020. It defined when “actual delivery” of crypto occurred in a transaction. The CFTC said it needed to reevaluate the rules after five years of changes in the crypto market.

Pham said removing the guidance aligns with the Trump administration’s goals for crypto policy. The decision came after recommendations from the president’s crypto working group. The group suggested the CFTC expand on how virtual assets are delivered in transactions.

The old rules created challenges for crypto exchanges. They made it difficult to offer margin trading or leverage unless actual delivery happened within 28 days. Katherine Kirkpatrick Bos, general counsel at StarkWare, praised the change.

She said the withdrawal gives exchanges much more flexibility. Bos warned that the guidance could change again if CFTC leadership changes. CFTC guidance is not legally binding like formal regulations.

Impact on Exchange Operations

Garry Krugljakow from Berlin-based Bitcoin treasury company aifinyo AG called the move a major signal. He said it shows cleaner jurisdiction for the CFTC. Krugljakow believes the change creates a regulatory path designed for growth.

He said actual delivery rules made sense in 2020 but not anymore. The crypto industry now has real custody solutions and collateralization. Bitcoin-backed credit products have also developed since the original guidance.

The CFTC has taken several crypto-friendly actions recently. Pham has led multiple policy changes in recent weeks. These moves come as Trump’s nominee Mike Selig prepares for confirmation hearings next week.

Regulatory Questions Remain

Todd Phillips from the Roosevelt Institute raised concerns about the withdrawal. He said the definition of actual delivery is important. It determines which exchanges must register with the CFTC and which do not.

The guidance withdrawal was part of the President’s Working Group report on digital assets. The report laid out the administration’s crypto agenda earlier this year. Law firm Steptoe had requested formal guidance on the term as early as 2016.

The CFTC noted developments in spot market operations over the past five years. The agency said these changes required a fresh look at delivery requirements. The withdrawal notice cited new means and methods in crypto purchases and sales.

Pham emphasized the guidance was outdated and overly complex. She said it penalized the crypto industry. The acting chairman stated it also limited innovation in the sector.

The CFTC can issue guidance to clarify how it interprets laws. It also provides insight into enforcement actions. However, this type of guidance differs from binding regulations.

Industry leaders expect more changes as Selig’s confirmation approaches. The CFTC has opened paths for crypto as collateral in derivative markets. These pilot programs represent additional steps toward crypto integration.

The post Crypto Exchanges Get More Freedom as CFTC Drops Delivery Rules appeared first on CoinCentral.

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