Removal of outdated rules offers exchanges room for innovation in margin trading and derivatives
The U.S. Commodity Futures Trading Commission (CFTC) has withdrawn its 2020 guidance on the “actual delivery” of crypto, a move welcomed by industry stakeholders for providing greater operational flexibility. The decision aligns with broader efforts to modernize regulatory approaches for digital assets and reduce barriers for crypto exchanges.
Originally finalized in March 2020, the guidance defined when crypto was considered delivered in a commodity transaction. Exchanges previously faced restrictions on margin or leveraged trading unless actual delivery occurred within 28 days. By scrapping the outdated guidance the CFTC under Acting Chairman Caroline Pham allows platforms to operate with more flexibility in collateralization custody and trading models
Industry experts highlighted the significance of the change. StarkWare’s Katherine Kirkpatrick Bos noted that the update enables exchanges to expand margin and leveraged products without being bound by rigid delivery rules. Analysts argue that the move reflects a regulatory shift toward scalable frameworks designed for modern digital asset markets.
However uncertainty remains as the CFTC has not yet replaced the guidance leaving ambiguity around registration requirements and the exact definition of actual delivery. Market participants are now awaiting further clarification to understand compliance obligations, though the withdrawal is widely seen as a positive step toward innovation in crypto markets.
This change underscores the ongoing evolution of U.S. crypto regulation, balancing oversight with flexibility for emerging financial technologies.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.