Key Takeaways
- The CFTC has withdrawn outdated guidance on the actual delivery of virtual currencies.
- This decision aligns with broader digital asset reforms and aims to foster innovation while ensuring market safety.
The Commodity Futures Trading Commission has withdrawn outdated guidance on the “actual delivery” of virtual currencies, citing major developments in crypto markets since the rules were introduced.
“Actual delivery” refers to when a buyer obtains full control of a digital asset, such as custody in a personal wallet, without interference or control by a third party.
The original framework, issued in 2020, imposed strict delivery standards within 28 days, particularly for leveraged or margined crypto trades. These rules often blurred the line between spot purchases and regulated futures contracts.
Acting Chairman Caroline D. Pham said removing the legacy framework aligns with the Administration’s goal of eliminating overly complex rules that stifle innovation.
“With decisive action, real progress can be made to protect Americans by promoting access to safe US markets,” she said.
The decision supports the CFTC’s ongoing implementation of recommendations from the President’s Working Group on Digital Asset Markets. The agency may issue updated guidance or FAQs and is encouraging public input through its ongoing Crypto Sprint initiative.
Source: https://cryptobriefing.com/cftc-crypto-delivery-guidance-reform/