U.S. CFTC Acting Chair Drops 'Actual Delivery' Guideline for Virtual Assets…Signal of Deregulation

JH Kim

Summary

Caroline Pham, Acting Chair of the U.S. CFTC, has abolished the virtual asset 'actual delivery' guideline.
The move is evaluated as a preparatory step to restructure the regulatory framework for virtual asset spot and derivatives.
The decision is interpreted as a signal of deregulation for the digital asset market as a whole.

According to crypto-focused media CoinDesk on the 11th (local time), Caroline D. Pham, Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), has discarded the so-called 'actual delivery' guideline to ease regulation of virtual assets (cryptocurrencies).

The guideline was enacted in 2020 and has been used as a standard to determine whether derivatives regulation should apply in virtual asset commodity trading based on whether actual spot delivery occurs. It is a provision regarded as a core concept in the Commodity Exchange Act.

Acting Chair Pham said, "This guideline could become an obstacle to future policy initiatives," and added, "The Trump administration's goal this year is to overhaul antiquated and complex regulations that are suppressing the virtual asset industry."

This move is evaluated as a preparatory step by the CFTC to restructure the regulatory framework for virtual asset spot and derivatives, and is interpreted as a sign of regulatory easing across the digital asset market.