The Commodity Futures Trading Commission (CFTC) has withdrawn two staff advisories related to digital asset derivatives. This action reflects a deliberate shift in the agency’s approach to overseeing the burgeoning digital asset market, aligning it more closely with the regulatory treatment of traditional financial products.
The CFTC, tasked with overseeing the U.S. derivatives markets—including futures, options, and swaps—has been increasingly involved in regulating digital asset derivatives, such as Bitcoin and Ethereum futures, since classifying certain cryptocurrencies as commodities under the Commodity Exchange Act (CEA).
Over the years, the agency issued staff advisories to guide derivatives clearing organizations (DCOs) and market participants on managing risks and compliance in this evolving space. Two such advisories were withdrawn on March 28, 2025.
On May 30, 2023, the Division of Clearing and Risk (DCR) issued CFTC Staff Advisory No. 23-07. Titled “Review of Risks Associated with Expansion of DCO Clearing of Digital Assets,” the advisory warned about risks in clearing digital asset derivatives, including cybersecurity threats, conflicts of interest, and difficulties in physically settling contracts.
It also signaled increased oversight, stressing the need for compliance with system safeguards and core principles under the CEA. This showed a cautious approach as DCOs (Derivatives Clearing Organizations) moved further into crypto-related clearing.
The second, CFTC Staff Advisory No. 18-14, was released on May 21, 2018, by the Division of Market Oversight (DMO) and DCR. Titled “Advisory With Respect to Virtual Currency Derivative Product Listings,” it provides guidance to exchanges and clearinghouses listing virtual currency derivatives.
Also check out: Coinbase champions CFTC regulation for the crypto spot market.
The CFTC, in its advisory, emphasized the importance of strong oversight, risk management, and market monitoring due to the new and highly volatile nature of virtual currencies. This announcement followed the launch of the first Bitcoin futures in late 2017 by exchanges such as CME Group and CBOE.
The CFTC withdrew Advisory No. 23-07 to ensure its regulation of digital asset derivatives remains consistent with other products.
It also withdrew Advisory No. 18-14, citing increased staff experience with virtual currency derivatives and the market’s continued growth and maturity as reasons for the decision.
This action aligns with broader regulatory developments under the incoming Trump administration, which has signaled a more crypto-friendly stance. The withdrawals occurred amidst discussions about expanding the CFTC’s authority over digital asset spot markets.
The timing also coincides with other regulatory adjustments, such as the FDIC’s updated guidance on crypto activities for banks, suggesting a coordinated effort to streamline oversight.
