CFTC removes crypto derivatives advisories to align with traditional finance
By removing crypto-specific regulations, the CFTC is paving the way for more institutional involvement in the growing crypto derivatives market.
The Commodity Futures Trading Commission (CFTC) has withdrawn two key staff advisories. These advisories set distinct regulatory expectations for cryptocurrency derivatives.
The move aligns the oversight of crypto-based financial instruments with traditional financial products. It marks a significant step towards regulatory parity.
The CFTC decided to rescind Staff Advisory No. 18-14, which outlined guidance on virtual currency derivative product listings. Advisory No. 23-07, which addressed risks in expanded digital asset clearing, was also withdrawn as the digital asset market matures.
These withdrawals signal the agency’s growing confidence in the crypto market’s development. It also shows its readiness to treat crypto derivatives like traditional financial products.
By eliminating these advisory distinctions, the CFTC is aiming to foster greater institutional engagement with crypto derivatives markets. The agency’s shift toward harmonising regulatory practices is expected to reduce uncertainty. It is also likely to encourage broader market participation.
The decision aligns with broader regulatory trends in the US. Other agencies have also taken steps to reduce the regulatory gap between traditional finance and digital assets.
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