Breaking Barriers: The CFTC’s Latest Move to Modernize Crypto Regulation
The U.S. Commodity Futures Trading Commission (CFTC) recently announced a game-changing move for the cryptocurrency industry. Acting Chairman Caroline D. Pham unveiled the withdrawal of the outdated 28-day rule for “actual delivery” of virtual currencies, signaling a significant regulatory reset for the sector.
Why This Matters: Bringing Crypto Under U.S. Oversight
This policy change aims to simplify and align regulations by treating Bitcoin (BTC) and Ethereum (ETH) more like traditional commodities. Previously, the 28-day rule created a substantial challenge, making it difficult for federally regulated exchanges to offer competitive, leveraged crypto products. By removing this barrier, the CFTC is paving the way to normalize cryptocurrency trading within the U.S. financial system.
A New Framework for Tokenized Collateral
Alongside the withdrawal of the old rule, the CFTC has launched a pilot program allowing digital assets like BTC, ETH, and USDC to serve as collateral in regulated derivatives markets. This step not only establishes a clear framework for tokenized collateral but also offers much-needed regulatory clarity for market participants. Through initiatives like the “Crypto Sprint,” public feedback is actively shaping these modernized rules.
What This Means for the Future of Crypto
These changes come amid growing discussions in the Senate about finalizing permanent leadership for agencies such as the CFTC and FDIC. Lawmakers aim to create a coordinated regulatory framework for digital assets, further reinforcing U.S. commitment to innovation and market safety.
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