CFTC withdraws old crypto rules to modernize market oversight

The Commodity Futures Trading Commission (CFTC) recently decided to withdraw outdated and overly complicated guidelines regarding the delivery of digital assets. Caroline Pham, the acting Chair and commissioner of CFTC, hinted at this decision.

In a statement dated Thursday, December 11, Pham mentioned that the CFTC will reverse guidelines from 2020 that follow the Dodd-Frank Act, a federal regulation established in 2010 to address issues raised from the 2008 financial crisis. Notably, these guidelines, set to be withdrawn, concentrate on the “actual delivery” of digital assets.

The move follows the recent publication of a list comprising the first members of its CEO Innovation Council. Sources close to the situation revealed that this council was established to review transformations in the derivatives market, with a specific focus on cryptocurrency, tokenization, and blockchain technology.

Notably, some of the major crypto industry CEOs joining this council include Shayne Coplan from Polymarket, Tyler Winklevoss from Gemini, and Arjun Sethi from Kraken. Leaders from prominent companies, including Nasdaq, Intercontinental Exchange, CME Group, and Cboe Global Markets, will accompany them.

This team of CEOs was formed over a period of just two weeks. According to Pham, the focus will primarily be on advancements in sectors such as derivatives markets connected to tokenization, crypto assets, 24/7 trading, perpetual contracts, prediction markets, and blockchain infrastructure.

The White House issues an order mandating the CFTC to oversee digital assets

The CFTC’s sudden decision has ignited heated debates in the crypto ecosystem. In an attempt to address this controversy, Pham alleged that this move aligns with US President Donald Trump’s earlier proposals, as presented in a report by his Working Group on Digital Asset Markets.

Following these suggestions, sources close to the situation highlighted that the White House released a detailed report on cryptocurrency over the summer. This report addressed topics such as illicit finance and tax evasion. It also mandated that the CFTC be granted the opportunity to oversee digital assets.

Responding to this announcement, Pham noted, “Today’s announcement demonstrates that we can make real progress to protect Americans by ensuring access to safe U.S. markets.”

Meanwhile, reports have noted that since Trump assumed the presidency of the United States, Pham has led several projects at the CFTC focused on supporting the crypto ecosystem. Some of these initiatives include the introduction of the “Crypto Sprint,” which was designed to establish clear regulations for cryptocurrencies.

To further demonstrate the commission’s efforts to back the crypto industry, the acting chair unveiled last week that Bitnomial positioned itself as the first exchange to successfully list spot crypto products after securing approval from regulators.

Additionally, a major, regulated cryptocurrency exchange founded by the Winklevoss twins, Gemini, received clearance from the CFTC on Wednesday, December 10, allowing it to provide users with classic binary event contracts.

As cryptocurrencies become increasingly adopted among individuals, the U.S. Office of the Comptroller of the Currency declared this week that national banks are granted permission to directly engage in “riskless principal” transactions involving digital assets.

Trump’s pro-crypto stance encourages more exposure to the crypto industry

Regarding Bitnomial’s move to provide spot cryptocurrency products approved by regulators, analysts acknowledge that this practice demonstrates the Trump administration and federal agencies’ efforts to encourage a more positive attitude towards the crypto industry.

Pham, on the other hand, mentioned that such a moment illustrates “a new golden age for innovation in America.” At this time, Bitnomial was about to introduce its services officially.

“The CFTC has a strong tradition of encouraging responsible innovation on futures exchanges while balancing regulatory flexibility with essential principles that protect both institutional and retail traders,” the acting chair said.

She added that this administration has developed a comprehensive plan, under the guidance of the U.S. president, to purposefully ensure the country reclaims its position as a leader in digital asset markets globally. In this plan, Pham asserted that the CFTC will play a key role.

Following the “Crypto Sprint” initiative, sources stated that this move came after the SEC and CFTC released a joint statement in September, clarifying that registered exchanges are allowed to promote the trading of certain spot commodity products, including crypto assets.