CFTC Withdraws Prior Guidance on Digital Asset Clearing

CFTC Division of Clearing and Risk staff ("DCR") withdrew its advisory letter on the risks of derivatives clearing organizations clearing of digital assets. Staff said it was taking this action to avoid implying that digital asset derivatives are treated differently from other products. 

In the 2023 advisory memorandum, titled "Risks Associated with Expansion of DCO Clearing of Digital Assets," DCR addressed the "growing interest among DCOs in expanding their clearing activities to include digital assets." (See previous coverage.) DCR had said that it expected DCOs and applicants "to actively identify new, evolving, or unique risks and implement risk mitigation measures tailored to the risks that these products or clearing-structure changes may present." 

In its withdrawal letter, the DCR stated that staff "conducts its supervision of clearing activities and oversight of compliance with the Commodity Exchange Act and Commission regulations consistently, regardless of the specific commodity underlying relevant contracts."