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The Daily Hodl 2025-03-31 20:00:47

CFTC Withdraws Advisory on Crypto Derivatives, Removing Regulatory Hurdle for Listings

The Commodity Futures Trading Commission (CFTC) is revoking an advisory requiring strict review of new virtual asset derivatives – financial instruments that derive their value from an underlying cryptocurrency, allowing investors to speculate on price movements without directly owning the asset. In a statement , the regulatory agency says that its Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR) decided to withdraw CFTC Staff Advisory No. 18-14 (Advisory with Respect to Virtual Currency Derivative Product Listings) effective immediately. The DMO and the DCR originally issued the advisory on May 21st, 2018, to provide guidance on enhanced standards for derivative contracts to be listed on a designated contract market (DCM) or swap execution facility (SEF), or to be cleared by a derivatives clearing organization (DCO). At the time, the DMO and the DCR said that the risks of the crypto markets justify scrutiny by the CFTC staff and registered entities. “In light of the risks discussed above, staff highlights certain key areas that require particular attention in the context of listing a new virtual currency derivatives contract pursuant to Commission Regulation 40.2 or 40.3. The topics are: (A) enhanced market surveillance; (B) coordination with CFTC staff; (C) large trader reporting; (D) outreach to stakeholders; and (E) DCO risk management.” On March 27th, the CFTC announced the withdrawal of the advisory. The agency says the guidance reflected the thinking of its staff in 2018 based on experience with crypto derivatives products. “DMO and DCR determined that the advisory is no longer needed given additional staff experience with virtual currency derivative product listings and increasing market growth and maturity.” Follow us on X , Facebook and Telegram Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Featured Image: Shutterstock/Dilyana Design/Andrey Lobachev The post CFTC Withdraws Advisory on Crypto Derivatives, Removing Regulatory Hurdle for Listings appeared first on The Daily Hodl .

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