The post CFTC withdraws 2 staff warnings on crypto derivatives to align oversight with TradFi appeared on BitcoinEthereumNews.com.

The Commodity Futures Trading Commission (CFTC) has formally rescinded two staff advisories that previously imposed distinct regulatory expectations on digital asset derivatives, signaling a pivot toward harmonized treatment of crypto-based financial instruments with traditional derivatives. According to an official statement released on March 28, the CFTC’s Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR) jointly withdrew CFTC Staff Advisory No. 18-14, which provided guidance on the listing of virtual currency derivative products, and Advisory No. 23-07, which addressed the risks associated with expanded digital asset clearing by derivatives clearing organizations (DCOs). Per CFTC Press Release 9059-25, the removals are effective immediately, stating, “The Commodity Futures Trading Commission’s Division of Market Oversight and Division of Clearing and Risk announced they are withdrawing CFTC Staff Advisory No. 18-14, Advisory with Respect to Virtual Currency Derivative Product Listings, effective immediately. As stated in the withdrawal letter, DMO and DCR determined that the advisory is no longer needed given additional staff experience with virtual currency derivative product listings and increasing market growth and maturity.” The decision reflects both increased staff experience with crypto-related derivatives and the broader maturation of digital asset markets. The agency stated that the withdrawal aligns its oversight practices with those applicable to traditional financial products, removing additional scrutiny that had previously distinguished digital asset derivatives. Path Toward Regulatory Parity The withdrawal of these advisories spotlights the CFTC’s strategic move to eliminate regulatory disparities between digital assets and traditional financial instruments. Staff Advisory No. 18-14, issued in 2018, had required exchanges listing crypto derivatives to provide heightened transparency and proactive risk assessments, reflecting early caution amid rising market interest. The withdrawal letter states, “The Advisory reflected ‘staff’s current thinking’ in 2018 ‘based on experience with virtual currency derivatives products to date.’” Advisory No. 23-07, published in 2023, raised…

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Filed under: News - @ March 31, 2025 10:26 am