Key Highlights:

• The CFTC retracted two crypto-related guidelines as of Friday, highlighting a matured market and the necessity of treating crypto derivatives like other derivative products.
• The agency has streamlined its approach towards cryptocurrency regulation.

Details:

The U.S. Commodity Futures Trading Commission (CFTC) withdrew two pieces of staff guidance concerning cryptocurrencies, moving towards a more simplified regulatory framework.
The first advisory, Staff Advisory No. 18-14, focused on guidelines for crypto-related derivatives and was found to be unnecessary due to increased staff experience and market growth.

The second withdrawn advisory, Staff Advisory No. 23-07, emphasized compliance due to heightened operational risks associated with digital assets and was rescinded to ensure parity in regulatory treatment between crypto and other derivatives.

This recent overhaul comes alongside a broader transformation within the CFTC, led by Acting Chair Caroline Pham, who aims to simplify and streamline operations, as well as enhance industry engagement.
Liz Davis, a Washington, D.C.-based partner and former chief trial attorney at the CFTC, commented that these changes align well with Pham’s vision of increased efficiency within the agency.