The US derivatives regulator has just taken a major technical step with significant consequences for the sector.
CFTC removes outdated guidelines
On December 11, Acting Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Caroline D. Pham announced that the agency would withdraw its outdated guidance on the “actual delivery” of virtual currencies.
By removing this major regulatory hurdle, the CFTC is taking a hands-on approach and immediately opening the door to regulated leveraged crypto products under the Commodity Exchange Act (CEA).
Essentially, the agency aims to move crypto trading away from offshore platforms and bring it firmly under US supervision.
Making the same comment on this, Acting Chairman Pham said:
“Eliminating outdated and overly complex guidelines that punish the crypto industry and hinder innovation is exactly what the government plans to do this year.
Pham added,
“Today’s announcement shows that decisive action can make real progress to protect Americans by promoting access to safe American markets.”
If “actual delivery” did not occur within the strict 28-day time frame, meaning the buyer did not gain full possession and control, the transaction was classified as a futures contract.
This classification immediately led to the most stringent regulatory requirements from the CFTC.
A little background on the 28-day rule
Regulators introduced the 28-day rule in March 2020, reflecting uncertainty about the trajectory of virtual currency markets.
This rule created a significant regulatory barrier. It pushed crypto into a specialized category, separating it from traditional commodities.
As a result, federally regulated exchanges such as Designated Contract Markets have found it prohibitively difficult to offer competitive, leveraged products to retail users.
Now that the rule has been rescinded, the CFTC is taking a big step toward standardization. Bitcoin [BTC] and ether [ETH] are treated more like traditional goods within the agency’s broader, technology-neutral framework.
What new changes will we see?
Now that the old rule has been removed, the agency is developing updated guidance and FAQs to replace it. It is also actively seeking public feedback through its ongoing ‘Crypto Sprint’ initiative.
For context, the CFTC has done so launched a pilot program that will allow digital assets, including BTC, ETH and USDC, to serve as collateral in regulated derivatives markets.
This initiative creates a clear framework for tokenized collateral. It also provides the regulatory certainty that market participants have been waiting for.
At the same time, outdated restrictions are being removed, rules that have already been made obsolete by newer legislation such as the GENIUS Act.
Together, these changes mark an important step toward a more streamlined and modern regulatory environment.
Who will be the next CFTC leader?
The Senate is moving toward final confirmation votes for President Trump’s nominees to lead the CFTC and the FDIC.
Earlier this week, lawmakers voted 52-47 to advance a resolution scheduling final votes on a large block of nominees for early next week.
As part of this process, senators review 97 confirmation questions. These include Mike Selig, nominated to lead the CFTC, and Travis Hill, nominated to serve as permanent chairman of the FDIC.
If both nominees are confirmed The interim period ends next week. This would create a permanent, coordinated regulatory framework aimed at bringing most digital asset activities under US supervision.
Final thoughts
- By eliminating the restrictive 28-day rule, the agency has removed one of the biggest barriers preventing regulated platforms from offering competitive leverage products.
- The pilot program that allows BTC, ETH, and USDC to serve as collateral formalizes a use case that institutions have long anticipated.