Key Highlights
- The CFTC has withdrawn its restrictive 2018 “actual delivery” guidance for retail leveraged crypto trades.
- Caroline D. Pham framed the withdrawal as fulfilling the Administration’s 2025 goal of cutting outdated rules that stifle crypto innovation while protecting American markets.
- The move aims to implement the July 2025 President’s Working Group report recommendations and develop new guidance with public input via the CFTC’s Crypto Sprint.
Acting Chairman of the Commodity Futures Trading Commission (CFTC) Caroline D. Pham announced today that the agency is officially withdrawing its 2018 guidance on the “actual delivery” of virtual currencies in leveraged retail commodity transactions.
The move eliminates what the agency now considers outdated and overly restrictive interpretive rules that have long been criticized by the crypto industry. Pham described the old guidance as “outdated and overly complex,” stating it “penalizes the crypto industry and stifles innovation.” She emphasized that removing it aligns with the current administration’s 2025 priority of reducing regulatory burdens while maintaining investor protection and market integrity.
Issued in 2018, the guidance interpreted the two-day “actual delivery” exception under the Commodity Exchange Act for leveraged or margined retail transactions in “virtual currencies.” Critics argued the strict requirements, such as full transfer of title and possession within 28 days, were nearly impossible to satisfy for most digital assets, effectively pushing U.S. retail traders toward unregulated offshore platforms.
“This is exactly what the Administration has set out to do this year,” Pham said. “Eliminating outdated guidance shows that with decisive action, real progress can be made to protect Americans by promoting access to safe U.S. markets.”
What comes next for crypto regulations?
The withdrawal clears the path for the CFTC to implement recommendations from the President’s Working Group on Digital Asset Markets report issued earlier this year. The agency signaled it may issue updated guidance or frequently asked questions (FAQs) in the future and invited industry participants and the public to provide input through its ongoing “Crypto Sprint” initiative.
The decision is expected to provide greater regulatory clarity for tokenized commodities, stablecoins used in retail leveraged trading, and other digital asset products under CFTC jurisdiction. Market participants view the withdrawal as a step toward bringing more crypto trading activity back onshore and under federal oversight.
CFTC undergoes major shift in crypto oversight
This latest action underscores a broader transformation at the CFTC, with a flurry of pro-innovation moves in recent weeks aimed at integrating digital assets into mainstream U.S. financial markets.
The momentum began on December 5, when the CFTC approved spot cryptocurrency trading on regulated U.S. exchanges for the first time. Coordinated with the SEC and aligned with presidential directives, the approval incorporates tokenized collateral and updates rules on margin and settlement to support blockchain integration.
On December 11, Acting Chairman Pham introduced the CEO Innovation Council, a new advisory body featuring top executives from major platforms, including Polymarket, Cboe Global Markets, CME Group, Bullish, Nasdaq, Bitnomial, Kalshi, Crypto.com, LSEG, Kraken, Intercontinental Exchange, and Gemini. The council will guide policy on emerging trends like tokenization, perpetual contracts, prediction markets, 24/7 trading, and blockchain infrastructure, building on the CFTC’s Crypto Sprint through 2026.
Additionally, the CFTC launched a three-month pilot on December 9, allowing Bitcoin, Ether, and USDC as collateral for margin in U.S. derivatives trading by futures commission merchants, complete with weekly reporting and risk management protocols. The program also introduces guidance for tokenized real-world assets like the U.S. Treasury securities and offers a “no-action” position for compliant stablecoins.
Collectively, these initiatives reflect the CFTC’s aggressive pivot under Pham’s leadership toward fostering U.S. leadership in digital finance, balancing oversight with innovation to reclaim market share from global competitors.
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