U.S. CFTC Abolishes Physical Delivery Rules for Cryptocurrency Transactions, Easing Regulations

On November 11, the U.S. Commodity Futures Trading Commission (CFTC) announced the withdrawal of its 2020 guidance concerning the 'physical delivery' of cryptocurrencies. Acting Chair Caroline Pham criticized the guidance as 'outdated and overly complex,' stating that it hindered innovation in the cryptocurrency industry. As part of the cryptocurrency-friendly policies promoted by the Trump administration, efforts are underway to simplify regulations and develop new guidance that better reflects current market conditions. The 2020 guidance had defined the conditions under which 'physical delivery' could occur in cryptocurrency transactions involving leverage or margin.