US CFTC Releases The Long-Awaited Final Guidance On ‘Actual Delivery' Of Digital Assets

The U.S. Commodity Futures Trading Commission (CFTC) has released interpretive guidance about what exactly does ‘delivery’ of digital assets constitute. The announcement followed a unanimous vote in approving the interpretive guidance. The CFTC stated:

“Specifically, the guidance clarifies the CFTC’s views regarding the ‘actual delivery’ exception to Section 2(c)(2)(D) of the Commodity Exchange Act (CEA) in the context of digital assets that serve as a medium of exchange, colloquially known as ‘virtual currencies.’”

The new move comes amid a year-long procedure which can be traced back to a settlement involving Bitfinex and CFTC. This particular settlement revolved around the accusation that the exchange failed to actually ‘deliver’ funds to different leveraged trading services clients.

It is on this basis that Steptoe & Johnson LLP, a law firm, pushed for elaborate guidance from CFTC regarding delivery.

The new announcement from CFTC now clarifies that physical delivery will involve 28 days which means that the buyer can utilize their bought virtual assets after the expiry of this period.

The fresh guidance comprises an individual that is holding or controlling such a commodity, purchased through leverage trading as well as other techniques. Such a person will have the capacity to utilize all the volume of the commodity for commerce purposes not later than 28 days after the transaction date and can use the coins at any other time thereafter.

In addition, CFTC also clarified that the selling party, as well as the facilitating agency, does not have any powers or privileges to retain ownership.

The clarity by CFTC is an indication that digital assets trading has gained prevalence within the mainstream financial and commodities markets, hence the need for the continued update of clarifications and guidance. In addition, the Chicago Mercantile Exchange (CME) introduced Bitcoin options trading. This was in response to the high demand for Bitcoin trading following the launching of Bitcoin futures back in 2017. With the recent guidance and clarity, it is expected that settlement disputes will drastically go down.

You can read the full 35 page release below:

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Joseph Kibe
Joseph Kibe
Joseph is a blockchain and cryptocurrency enthusiast, with a strong conviction that exposure of blockchain technology is for the good of the society. Fascinated by the massive potential of cryptocurrencies and the technology behind them – blockchain – Joseph spent lots of his time learning more about the industry, becoming a polished expert writer in the sector. He covers any cryptocurrency and blockchain related content.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Venus Protocol's Decentralized Stablecoin, Via, Launches on Binance Smart Chain; Forked From Compound & MakerDAO

On September. 28, Binance announced the launch of Venus Protocol, an algorithmic money market platform that allows borrowing of over-collateralized loans, lending, and generation...

‘Large-Scale' Crypto Exit Scams Detected in Estonia’s E-Residency Program

Estonia had granted foreigners remote access to its digital infrastructure through its e-residency program, which is now linked to cryptocurrency frauds abroad. Amidst Europe working...

Grayscale Bought 17,100 BTC Last Week, Now Holds 2.4% of Bitcoin’s Supply

As the bitcoin price continues to remain under $13,000 for over a year now and around $10,000 for more than the past month, there...

EY Debuts First ERP Solution on the Ethereum Public Blockchain and Enhances On-Chain Analytics Explorer

Consulting giant Ernest & Young (EY) has launched an enterprise procurement solution based on the Ethereum public blockchain. This initiative will leverage smart contract...

YFI Founder Andre Cronje ‘Still Building' the DeFi Project that Got Hacked for $16 Million

Amidst the craze and shift toward non-fungible tokens (NFT), DeFi sweetheart yEarn’s founder Andre Cronje’s latest project saw rug pulled on $16 million. The project...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today