CFTC Scraps Outdated Crypto Delivery Rule, Provides More Flexibility to Exchanges

TLDR

• The CFTC’s decision removes the 2020 rule on crypto delivery in commodity transactions.
• Exchanges can now offer margin trading with fewer restrictions on actual delivery.
• The guidance withdrawal comes after feedback from the president’s crypto working group.
• Uncertainty remains as the CFTC has not replaced the old guidance with new definitions.

The CFTC has withdrawn its 2020 guidance on the “actual delivery” of cryptocurrency in commodity transactions, a move that provides greater flexibility for crypto exchanges. This change, announced on December 12, 2025, removes restrictions on margin trading and leverage, offering exchanges more freedom to innovate. However, the withdrawal leaves uncertainty as the CFTC has not yet provided a new definition or replacement guidance for crypto delivery.

CFTC Pulls ‘Actual Delivery’ Crypto Guidance, Offering Flexibility to Exchanges

The Commodity Futures Trading Commission (CFTC) has officially withdrawn its guidance on the “actual delivery” of cryptocurrency in commodity transactions. This move, announced on December 12, 2025, is seen as a step towards providing more flexibility for crypto exchanges, particularly when it comes to margin trading and leverage.

The guidance, which was originally finalized in March 2020, defined when an “actual delivery” of crypto would take place in such transactions. However, CFTC Acting Chairman Caroline Pham stated that this guidance had become outdated due to the rapid evolution of the crypto industry.

The CFTC’s decision to eliminate the guidance aligns with the current administration’s goal of reducing unnecessary regulatory burdens on emerging technologies like cryptocurrency. Pham emphasized that eliminating these overly complex regulations would foster innovation in the crypto space, which is experiencing rapid growth and transformation.

Removal of Restrictions on Margin Trading

One of the key consequences of the CFTC’s move is the increased flexibility it offers exchanges, particularly when it comes to margin trading. Previously, exchanges faced limitations when offering margin or leveraged trading unless they could ensure “actual delivery” of crypto within 28 days. This provision was seen as restrictive by many industry experts, as it limited exchanges’ ability to offer competitive financial products.

Katherine Kirkpatrick Bos, General Counsel at StarkWare, praised the decision, stating that it would make it easier for exchanges to offer these products without being tied to the 28-day delivery rule. She cautioned, however, that this is only guidance and not a law, meaning future changes could occur depending on shifts in leadership or regulatory priorities.

Shifting Regulatory Landscape

The CFTC’s decision reflects a broader trend towards a more crypto-friendly regulatory environment under Pham’s leadership. The CFTC has made several moves in recent months to clarify its stance on virtual assets and how they are treated under commodity laws. By withdrawing the guidance on crypto delivery, the CFTC is allowing the crypto industry to adapt to new market realities without being burdened by outdated rules.

Garry Krugljakow, head of Bitcoin strategy at aifinyo AG, expressed optimism about the regulatory shift. He noted that the move is likely to be part of a broader strategy to create a more streamlined and scalable regulatory framework for the crypto market. He argued that the concept of “actual delivery” no longer made sense in a world where digital assets can be securely custodied, collateralized, and used for credit transactions.

Uncertainty About Future Definitions

While the withdrawal of the guidance provides more flexibility, it also introduces uncertainty about the future regulatory environment. Todd Phillips, a fellow at the Roosevelt Institute, pointed out that without clear definitions from the CFTC on what constitutes “actual delivery,” there will be confusion for both exchanges and regulators. The absence of a clear framework could lead to inconsistencies in how different exchanges approach compliance with the CFTC’s rules, which might create confusion for market participants.

As the CFTC has not replaced the withdrawn guidance with new regulations, it remains unclear what criteria exchanges will have to meet to register with the agency or to comply with commodity laws. The lack of clarity could impact exchanges, particularly those that are uncertain about the CFTC’s expectations for crypto delivery in transactions.

In the meantime, the industry is left to navigate this uncertainty, which could persist until the CFTC releases new rules or guidelines. However, many believe the move is indicative of a shift towards a more flexible and adaptable regulatory environment that could support the growth of the crypto market.

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