CFTC Withdraws Outdated 2020 Bitcoin and Crypto Guidance, Adopts Technology-Neutral Framework
On December 11, 2025, the Commodity Futures Trading Commission (CFTC) withdrew its 2020 actual delivery guidance for Bitcoin and other virtual currencies, calling the framework outdated and inconsistent with the maturity of the current market.
The old guidance had defined actual delivery for leveraged or margined crypto purchases within a 28-day window requiring full possession and control of the asset. The withdrawal shifts digital assets to be regulated under the CFTC's general, technology-neutral framework, which reduces compliance burdens for exchanges listing new crypto products.
Acting Chair Caroline Pham stated that the agency's experience with derivatives listings and custody practices made the old rules incompatible with how the industry currently operates. This move follows the CFTC's earlier clearance of spot crypto trading on federally regulated futures exchanges, signaling a broader regulatory normalization for crypto markets.
As part of its Crypto Sprint initiative, the CFTC launched a pilot on December 8 allowing Bitcoin, Ether, and USDC to be used as collateral in derivatives markets. This pilot has a three-month initial phase and requires weekly reporting. Additionally, the agency noted that tokenized real-world assets, such as U.S. Treasuries and money market funds, can be evaluated within the existing regulatory framework.
To ease the transition, the CFTC granted no-action relief for certain non-securities digital assets used as customer margin. Caroline Pham has been acting chair since January and is expected to step down following the Senate confirmation of Michael Selig. The shift in guidance follows coordination with the Securities and Exchange Commission (SEC) on spot product approvals for registered exchanges.
