CFTC Withdraws Guidance on the Term "Actual Delivery" Involving Virtual Currency

The CFTC withdrew "outdated" interpretive guidance on "actual delivery" for retail commodity transactions involving virtual currencies.

In the withdrawn 2020 guidance, the agency addressed when actual delivery occurs in retail transactions involving "digital assets that serve as a medium of exchange." The CFTC determined the guidance provided limited value to market participants. The agency further stated the guidance may conflict with ongoing work to implement recommendations from the President's Working Group report, Strengthening American Leadership in Digital Financial Technology, established by Executive Order 14178.

The CFTC said it plans to reevaluate the guidance in light of developments in spot markets for virtual currencies and connected derivatives markets.