two guidelines on the crypto sector have been withdrawn

Crypto

two guidelines on the crypto sector have been withdrawn

The Commodity Futures Trading Commission (CFTC), the U.S. authority overseeing the derivatives markets, has recently announced the withdrawal of two important guidelines in the crypto sector, marking a substantial change in the regulatory approach of the United States towards the industry. The directives, withdrawn with immediate effect on March 28, were introduced at a time when the cryptocurrency industry was facing increasing scrutiny from regulators.

CFTC: a more mature understanding with the digital market

According to what was stated by the CFTC itself, the withdrawal of the guidelines reflects the increased experience of the staff in managing derivative products based on cryptocurrencies, as well as the growth and maturity of the market.

In particular, the Division of Market Oversight (DMO) and the Division of Clearing and Risk (DCR) have eliminated two key documents: the “CFTC Staff Advisory No. 18-14” from 2018 and the more recent “CFTC Staff Advisory No. 23-07” from 2023. This is a sign of openness, which could herald a treatment of crypto derivatives similar to that reserved for more traditional financial products.

Farewell to the strict surveillance on virtual derivatives

The first guideline withdrawn, the “CFTC Staff Advisory No. 18-14”, was issued in May 2018. In it, the CFTC provided precise guidance to markets and central counterparties during the listing phase of derivative contracts linked to virtual currencies. At the time, the document advocated for particular regulatory caution, highlighting the “significant risks associated with the cryptocurrency markets” and the need for meticulous oversight.

Among the required qualifications were:

• Increased market surveillance by the platforms that offered the derivatives;
• Direct collaboration with the CFTC surveillance group;
• Daily reports from American or foreign intermediaries;
• A reporting threshold for large operators set at 5 Bitcoin or the equivalent in other cryptocurrencies, with the aim of identifying potential market manipulation activities.

With the withdrawal of this guideline, the CFTC acknowledges that such measures – once considered indispensable – are now outdated by the progress and structuring of the market.

A more uniform stance towards digital products

The second document withdrawn is the “CFTC Staff Advisory No. 23-07”, published in May 2023. This notice focused on the risks related to the expansion of clearing activities in the digital realm by central counterparties (DCO, Derivatives Clearing Organizations).

The motivation provided for the withdrawal is clear: “to ensure that the regulatory treatment of digital derivatives does not differ from that reserved for other products.” A message that reinforces the idea of a normalization of the CFTCs approach to the crypto sector.

The document reminded central counterparties and operators that any expansion of activity or change in business model would be subject to careful review, particularly regarding operational and IT risks.

Furthermore, the strictest compliance with the Commodity Exchange Act, the law governing derivatives trading in the United States, was required. It was also suggested to maintain constant collaboration with other CFTC departments to carefully evaluate the physical settlement mechanisms involving digital assets.

A new regulatory scenario on the horizon

Although the withdrawal of these guidelines does not imply a deregulation, the message is clear: the CFTC is moving towards an equal treatment of crypto derivatives compared to other regulated financial products. This change of course also emerges from other initiatives recently undertaken by the agency.

In February 2025, the CFTC announced the organization of a CEO Forum that will see the participation of some of the main companies in the crypto sector – including Circle, Coinbase, Crypto.com, MoonPay and Ripple – to discuss the launch of an experimental pilot program on digital asset markets. The initiative, initially proposed by the interim chair Caroline Pham in 2023, represents a sort of regulatory sandbox, designed to offer greater regulatory clarity to operators.

Further developments occurred in November 2024, with the publication of the recommendations of the Global Markets Advisory Committee of the CFTC, including the notable extension of the use of non-monetary collateral through DLT technology (Distributed Ledger Technology).

Bitnomial launches regulated futures on XRP

Even on the market front, signs of maturation continue to emerge. In mid-March, the derivatives exchange platform Bitnomial launched the first CFTC-regulated future contract on XRP, an absolute novelty in the United States. This represents further confirmation of the progressive inclusion of digital tokens in the circuits of traditional finance under the supervision of the authorities.

Towards a new era for crypto regulation

The withdrawal of the two directives is not a step towards regulatory anarchy, but rather a signal of confidence in the sectors ability to self-regulate within the existing regulatory framework. The CFTC finally seems ready to shift the treatment of digital assets from the realm of exception to that of custom, recognizing the growing professionalization of the bull and bear sector.

Attention remains high on potential systemic risks, especially in terms of cybersecurity and governance. However, institutions seem to want to equip themselves with less invasive and more effective tools, consistent with the evolution of the market and its dynamics.

Ultimately, this new attitude could not only reduce regulatory uncertainty but also foster innovation and the attraction of capital, marking the opening of a season of greater dialogue between supervision and the crypto industry.