The Commodity Futures Trading Commission (CFTC) has taken a significant step in reshaping U.S. oversight of digital assets, formally withdrawing guidance that previously dictated how “actual delivery” of virtual currencies should be handled.
The agency says the move reflects rapid changes in crypto markets and the need for rules that match present-day realities.
Shift Toward Modernized Oversight
Acting Chairman Caroline D. Pham described the decision as part of a broader push within the Administration to remove regulations that no longer serve their purpose. According to Pham, outdated frameworks have at times weighed down companies working legally within the United States by creating ambiguity around what constitutes true possession of a digital asset.
Under the 2020 guidance, crypto transactions involving margin, credit, or financing were subject to strict conditions.
Buyers were required to gain full control of an asset—typically within 28 days—and sellers or intermediaries could not maintain any authority over it. While intended to protect customers, these standards often blurred key distinctions between spot market activity and derivatives trading.
The CFTC now says that the rapid maturity of digital asset markets, including advances in custody, on-chain settlement, and institutional infrastructure, makes the older guidance too narrow and impractical.
Aligning With Federal Priorities
The withdrawal supports the recommendations of the President’s Working Group on Digital Asset Markets, which has pushed federal agencies to coordinate on consistent standards for crypto oversight. Pham emphasized that the CFTC’s action signals a willingness to remove barriers to innovation while still maintaining strong protections for U.S. consumers.
The agency noted that it may introduce updated guidance or develop a set of FAQs to provide clearer expectations for both industry participants and retail users. In the meantime, the CFTC is urging the public and market stakeholders to participate in its ongoing “Crypto Sprint,” a program designed to gather feedback on regulatory gaps and emerging risks.
What This Means for the Industry
The decision is widely interpreted as a sign that regulators are preparing to revisit previously rigid interpretations of crypto delivery, custody, and trading practices.
By removing a framework that many firms considered outdated, the CFTC is positioning itself to take a more adaptive approach—one that recognizes how digital asset markets have evolved in the last four years.
While the withdrawal does not immediately introduce new rules, it opens the door for a refreshed framework that could better define how spot market transactions should function without unintentionally pushing compliant activity outside the United States.
As federal agencies continue working toward clearer standards for digital assets, today’s move marks an early signal that more flexible, market-aligned policies may be on the way.
