CFTC Withdraws Two Directives to Ease Crypto Derivatives Oversight

The U.S. Commodity Futures Trading Commission (CFTC) has withdrawn two directives that previously enforced stricter oversight on crypto derivatives, indicating a shift towards regulatory equality between digital and traditional finance products.

Staff Advisory No. 23-07 and No. 18-14 have been removed, reducing scrutiny on crypto markets.
The CFTC aims to ensure digital asset derivatives are treated similarly to other financial products.
This change may encourage greater participation from traditional financial institutions in the crypto space.
Despite easing restrictions, the CFTC will still require strong risk assessments for digital assets.
The Office of the Comptroller of the Currency (OCC) has allowed U.S. banks to provide crypto services without prior approval, but with strict risk management practices.
The FDIC is advocating for strong oversight of banks offering crypto services, reflecting a mixed regulatory environment.
These developments indicate a growing support among U.S. regulators for digital finance while maintaining safeguards.

The withdrawal of these directives could accelerate the integration of digital assets into mainstream finance, enhancing confidence for companies to enter the market while focusing on risk and stability.