The Commodity Futures Trading Commission (CFTC) has formally withdrawn two personnel advice that have previously imposed different regulatory expectations on digital assets derivatives, which gives a hinge to the harmonized treatment of crypto-based financial instruments with traditional derivatives.
According to an official statement released on March 28, the CFTCs Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR) jointly introduced CFTC personnel advice no. 18-14, those guidelines for the offer of virtual currency products)..
Per CFTC press release 9059-25, the removals are immediately in force and mention,
“The Markt Oversight and Division of Clearing and Risk department of the Commodity Futures Trading Commission has announced that it will withdraw CFTC Personnel Advice no. 18-14, Advice with regard to product lists of virtual currency derivativesImmediately effective.
As stated in the withdrawal letter, DMO and DCR have established that the advice is no longer necessary, given additional personnel experience with virtual currency -disposed product lists and increasing market growth and adulthood. “
The decision reflects both increased personnel experience with crypto-related derivatives and the broader maturation of digital asset markets. The agency stated that the withdrawal adjusts its supervisory practices with those applicable to traditional financial products, so that extra control was removed that previously distinguished digital assets derivatives.
Path to regulatory parity
The withdrawal of these advice highlights the strategic move of the CFTC to eliminate regulatory differences between digital assets and traditional financial instruments.
Personnel Advice no. 18-14, issued in 2018, had required exchanges to mention crypto-derivatives to offer increased transparency and proactive risk assessments, which is a reflection of an early caution in the midst of rising market interests.
The withdrawal letter states,
“The advice reflected” the current thinking of the staff “in 2018” based on experience with virtual currency derivative products so far. “
Advice no. 23-07, published in 2023, issued concern about systemic risks of digital assets when DCOs started expanding clearing services with new Tokenized products. The removal of both documents removes the language that an increased concern of the regulations have specifically linked to the digital nature of these assets.
“Given additional personnel experience in the intervening years, as well as increasing market growth and adulthood, DMO and DCR believe that the virtual currency list is no longer necessary. According to DMO and DCR, DMO and DCR decided to withdraw the advice, immediately in force.”
The CFTC emphasized that digital assets derivatives will now be subject to the same regulatory evaluation and risk protocols that are applied to derivatives based on raw materials or financial indices, such as oilutures or interest rate swaps.
Impact on market participation and institutional involvement
By eliminating individual advice, the CFTC cleans up a path for greater institutional participation in crypto derivative markets. This change is expected to reduce the uncertainty of compliance for companies that want to offer or delete digital assets, in particular within established financial institutions that are already in contact with traditional derivatives markets.
The relocation focuses on long -term concerns about the lack of parity in regulatory treatment and is intended to indicate that digital asset derivatives will not be subject to ad hoc or inconsistent supervision.
Although the removal of prescriptive guidelines, the CFTC noted that DCOs are still expected to carry out thorough risk assessments, especially in view of the volatility and unique guardianship mechanics of digital tokens. This is consistent with the agency’s broader approach to carefully supervising and encouraging innovation.
The decision reflects broader legal shifts on American financial agencies. Other supervisors, including the Office of the Comptroller of the Currency (OCC), have procedural requirements for digital assets services offered by banks. The OCC now enables US financial institutions to enter into with Stablecoins and guardianship services without prior approval, provided that there are appropriate risk management structures.
The Pivot of the CFTC is part of a wider, multi-agency trend to remove artificial distinctions between tradfi and defi-sectors, because financial markets integrate blockchain infrastructure and Tokenized products.
According to CFTC chairman Rostin Behnam, the agency remains committed to “principles-based supervision” that keeps innovation and market integrity in balance. Whether this model can effectively scales in the broader landscape of digital assets will probably depend on future cooperation between authorities and legislative clarity.
