In a major policy reset for U.S. digital asset oversight, the Commodity Futures Trading Commission has withdrawn its 2020 staff guidance on “actual delivery,” signaling a strategic shift in how the regulator interprets certain retail crypto transactions. The move marks one of the most significant updates to CFTC Crypto Regulation in years, reshaping how leveraged or financed retail trades may be classified under futures rules.
Acting Chairman Caroline D. Pham said on Dec. 11, 2025, that the agency removed the guidance because crypto markets, trading structures and custodial frameworks have evolved significantly since 2020. She added that the previous model had grown “outdated and overly complex,” creating friction rather than clarity for market participants.
The decision aligns with broader federal efforts to modernize digital-asset policy and suggests the CFTC is preparing a refreshed regulatory framework more suited to today’s market dynamics.
You May Like This: South Korean authorities are preparing new regulations for crypto exchanges.
CFTC Withdraws Interpretation That Defined a Decade of Retail Crypto Oversight
The 2020 guidance played a critical role in determining whether certain retail crypto trades — especially margined, leveraged or financed transactions — should be treated like futures contracts. Under U.S. law, these products fall under the CFTC’s jurisdiction unless they qualify for the “actual delivery” exception.
When this exception is in effect, retail commodity transactions are not treated like futures. The most important thing is whether the customer really gets full ownership and control of what they bought, and they have to get it within a certain amount of time. The exception doesn’t count if the seller or anyone else still has some control that makes it impossible to deliver.
The CFTC Crypto Regulation update does not eliminate the statutory “actual delivery” framework. Instead, it removes the 2020 staff interpretation from the agency’s active playbook, clearing the field for a modernized model.
Pham noted that clearer, more relevant standards are needed as the industry shifts from early centralized custodial platforms to more complex, multi-party, and on-chain settlement environments.
You May Like This: Binance Deepens Ties to Trump’s Crypto Platform as USD1 Stablecoin Becomes Core Collateral
Why “Actual Delivery” Still Defines Retail Crypto Treatment
“Actual delivery” is still a legal threshold that determines whether retail crypto transactions trigger futures-style compliance obligations, even without the 2020 guidance.
The law still says that regulators must treat leveraged or financed crypto transactions as futures unless the goods are actually delivered.
The CFTC laid out two main tests in 2020:
- The buyer must have full ownership and control of the digital asset.
- The seller and any other parties involved must not have a role that makes it impossible to deliver the goods.
The CFTC’s decision to take away that guidance shows that the market has outgrown the old framework. There are now on-chain smart contract structures, multi-sig arrangements, institutional custodians, and hybrid settlement systems in the crypto custody space. These are all models that the 2020 rule didn’t fully cover.
This is why the change in CFTC crypto rules is important. The rules are still in place, even though the market structures have changed. The agency now needs to change how those tests work in a new age of technology.
You May Like This: Binance Upbit Hack: Freeze Draws Scrutiny as Korean Authorities Report Limited Action
What Comes Next for Digital Asset Oversight
In its announcement, the CFTC said it is considering updated guidance, FAQs and additional public engagement through its “Crypto Sprint,” a broader initiative tied to upcoming federal digital-asset recommendations.
This signals two priorities:
- Modernizing oversight to match today’s trading and custody standards
- Reducing regulatory ambiguity for exchanges, brokers and retail platforms
The withdrawal is not deregulation. It is a reset — and possibly a precursor to clearer, more enforceable standards under a unified federal policy.
Market participants should expect a new phase of CFTC Crypto Regulation that emphasizes customer protection, custody transparency, and standardized treatment for retail crypto leverage products.
