The Commodity Futures Trading Commission (CFTC) is rolling back legacy policy on digital assets, marking another step in its reorientation toward regulated crypto markets.
Acting CFTC Chairman Caroline D. Pham said the agency is withdrawing its years-old guidance on the “actual delivery” of virtual currencies, a document that had shaped how firms could custody and settle digital asset transactions since 2020.
The decision clears a path for new guidance that reflects the rise of tokenized markets, recent legislation and the CFTC’s growing oversight of spot crypto trading.
“Eliminating outdated and overly complex guidance that penalizes the crypto industry and stifles innovation is exactly what the Administration has set out to do this year,” Pham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.
Pham added that the move shows the agency can protect U.S. traders while supporting broader access to regulated markets.
The withdrawn advisory outlined the conditions under which virtual currency could be considered “delivered” in retail commodity transactions. The framework was drafted in an era when regulated digital asset infrastructure was limited and focused on Bitcoin custody and settlement.
Since then, Congress passed the GENIUS Act, the CFTC opened the door to regulated spot trading, and tokenization has become a core focus across major financial institutions. Staff now views the 2020 advisory as out of step with current market realities.
The withdrawal also advances the CFTC’s effort to implement recommendations from the President’s Working Group on Digital Asset Markets.
The CFTC’s broader crypto policy turn
The announcement builds on a series of steps taken in early December that signal an effort to bring crypto activity onshore and under federal supervision.
Earlier this month, the agency launched a pilot program that permits Bitcoin and other crypto to serve as collateral in regulated derivatives markets. The program includes detailed reporting and risk-management requirements for futures commission merchants, along with updated guidance on how tokenized assets fit within existing CFTC rules.
Under the pilot, firms must submit weekly reports that itemize the digital assets held in customer accounts and notify regulators of any material incidents tied to tokenized collateral.
The structure is meant to provide the CFTC with visibility into operational and custody risks while firms test the use of crypto in margin accounts.
The agency also issued a no-action position for FCMs that accept non-securities digital assets, including payment stablecoins, clarifying how capital and segregation requirements apply. At the same time, staff withdrew restrictions from 2020 that had limited the use of digital assets as collateral.
CFTC’s guidance with U.S. spot crypto markets
The CFTC also approved federally regulated spot Bitcoin and crypto trading for the first time. Bitnomial, a U.S. derivatives platform, will begin offering spot, perpetuals, futures and options on a single exchange under full CFTC supervision next week.
The exchange’s structure supports unified margin and net settlement across product types, reducing redundant collateral requirements for traders.
Pham said the expansion of spot trading under CFTC oversight offers U.S. traders a secure alternative to offshore venues and creates an environment where domestic firms can operate without state-by-state uncertainty.
The agency’s shift extends beyond trading. Polymarket, a crypto-based prediction market, secured approval to relaunch in the U.S. after upgrading its compliance systems and acquiring a registered platform.
The CFTC has said its broader goal is to strengthen oversight of digital markets without blocking the adoption of new technology.
In other news, the CFTC has approved Gemini’s application for a Designated Contract Market license, clearing the way for the exchange to launch a prediction market and potentially expand into crypto futures, options, and perpetual swaps.
Gemini first applied for the license in 2020, well before the recent surge of interest in prediction markets and platforms.
