The US Commodity Futures Trading Commission (CFTC) Acting Chairman, Caroline Pham, has withdrawn “outdated guidance” on the delivery of cryptocurrencies, a move widely praised for giving exchanges greater flexibility.
“Eliminating outdated and overly complex guidance that penalizes the crypto industry and stifles innovation is exactly what the Administration has set out to do this year,” Pham said on Thursday.
The guidance, first finalized in March 2020, defined when “actual delivery” of crypto occurred in a commodity transaction. In a recent notice, the CFTC said it needed to “reevaluate such guidance in light of further developments during the past five years.”
Under Pham, the CFTC has adopted a more crypto-friendly approach. The withdrawal was made following recommendations from the president’s crypto working group, which urged the agency to provide clearer guidance on how cryptocurrencies may be classified as commodities and to update rules around the actual delivery of virtual assets.
Exchanges gain more flexibility
Katherine Kirkpatrick Bos, general counsel at StarkWare, welcomed the change, noting that the previous guidance had made it difficult for exchanges to offer margin or leverage unless actual delivery occurred within 28 days.
“This gives exchanges much more flexibility,” she said. “But PSA — this isn’t law, just guidance. It could change again if leadership changes.”
CFTC guidance is intended to clarify how the agency interprets legislation and how it might enforce rules in specific situations, but it is not legally binding in the same way as formal regulations.
Garry Krugljakow, head of Bitcoin strategy at Berlin-based Bitcoin treasury company aifinyo AG, suggested in a post on X that the move is a “major tell” of what’s ahead.
“This signals two things: clearer jurisdiction for the CFTC and a regulatory path designed for growth, not hesitation,” he said. “Actual delivery made sense in 2020, but not in a world of real custody, collateralization, and Bitcoin-backed credit.”
Uncertainty remains without guidance
Todd Phillips, a fellow at the Roosevelt Institute, noted that the definition of actual delivery is crucial because it determines which exchanges must register with the CFTC.
“The CFTC has replaced the previous guidance with nothing,” he said. “Right now, there’s no clarity on what ‘actual delivery’ means or which exchanges are required to register.”
