The U.S. derivatives regulator has just made a major technical move with significant implications for the industry.
CFTC removes outdated guidelines
On the 11th of December, U.S. Commodity Futures Trading Commission (CFTC) Acting Chairman Caroline D. Pham announced that the agency would withdraw its outdated guidance on the “actual delivery” of virtual currencies.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 practical approach and directly opening the door for regulated leveraged crypto products under the Commodity Exchange Act (CEA).
In essence, the agency aims to shift crypto trading away from offshore platforms and bring it firmly under U.S. oversight.
Remarking on the same, Acting Chairman Pham said,
“Eliminating outdated and overly complex guidance that penalizes the crypto industry and stifles innovation is exactly what the Administration has set out to do this year.
Pham added,
“Today’s announcement shows that with decisive action, real progress can be made to protect Americans by promoting access to safe U.S. markets.”
If “actual delivery” failed to occur within the strict 28‐day window, meaning the buyer did not gain full possession and control, the transaction was classified as a futures contract.
This classification immediately triggered the CFTC’s most stringent regulatory requirements.
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 found it prohibitively difficult to offer competitive, leveraged products to retail users.
Now, with the rule withdrawn, the CFTC is taking a major step toward normalization. Bitcoin [BTC] and Ethereum [ETH] are being treated more like traditional commodities under the agency’s broader, technology‐neutral framework.
What new changes will we see?
With the old rule removed, the agency is developing updated guidance and FAQs to replace it. It is also actively seeking public feedback through the ongoing “Crypto Sprint” initiative.
For context, the CFTC has launched a pilot program that allows digital assets, including BTC, ETH, and USDC, to serve as collateral in regulated derivatives markets.
This initiative establishes a clear framework for tokenized collateral. It also provides the regulatory certainty that market participants have been waiting for.
At the same time, it removes outdated restrictions, rules that newer legislation, such as the GENIUS Act, has already superseded.
Together, these changes mark a significant step toward a more streamlined and modern regulatory environment.
Whose going to be the next CFTC leader?
The Senate is moving toward final confirmation votes for President Trump’s nominees to lead the CFTC and FDIC.
Earlier this week, lawmakers voted 52–47 to advance a resolution that schedules the final vote on a large bloc of nominees for early next week.
As part of this process, senators are reviewing 97 confirmation questions. These include Mike Selig, nominated to head the CFTC, and Travis Hill, nominated to serve as the permanent Chairman of the FDIC.
If both nominees are confirmed next week, the interim period will come to an end. This would establish a permanent, coordinated regulatory framework aimed at bringing most digital asset activity under U.S. 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 leveraged products.
- The pilot program enabling BTC, ETH, and USDC to serve as collateral formalizes a use case that institutions have long anticipated.
