CFTC Scraps Outdated Crypto Rules, Launches New Pilot Program

The CFTC has withdrawn outdated crypto delivery guidance and launched a pilot program for digital asset collateral, aiming to modernize regulation, foster innovation, and expand oversight of U.S. crypto markets.

The Commodity Futures Trading Commission (CFTC) has withdrawn its outdated guidance on the "actual delivery" of virtual currencies, a framework that had defined how digital assets were considered delivered in retail commodity transactions since 2020. This move is part of a broader effort to modernize crypto regulation, reflecting significant developments in tokenized markets, new legislation, and the CFTC's expanding oversight of spot crypto trading. The withdrawal eliminates complex rules that were seen as penalizing the crypto industry and stifling innovation. In tandem, the CFTC has launched a Digital Asset Pilot Program, allowing regulated brokers to accept Bitcoin, Ethereum, and USDC as collateral for derivatives, with strict reporting and risk-management requirements. The agency's actions align with recommendations from the President's Working Group on Digital Asset Markets and aim to provide regulatory clarity, foster innovation, and support the growth of regulated digital asset markets in the U.S.