CFTC Scraps Outdated Rules in Push Toward Full Crypto Legalization

In a shift that underscores how quickly the United States is reworking its digital asset strategy, the Commodity Futures Trading Commission has eliminated a set of legacy rules that once dictated how crypto assets must be “delivered” in derivatives and trading environments.

The move breaks from years of regulatory ambiguity and signals that Washington wants simpler, more functional rules as crypto enters mainstream financial architecture.

The outdated guidance had long frustrated industry participants, who argued that the rules were written for an era when regulators barely understood blockchain systems. Acting Chair Caroline Pham cast the repeal as part of a broader modernization attempt—an effort not only to bring clarity but also to stop penalizing innovation with overly technical interpretations of digital asset delivery.

Pham tied the action to the administration’s broader push to formalize crypto markets under President Donald Trump, calling the removal a necessary step to ensure U.S. markets remain competitive. She said the agency’s approach is now focused on enabling safe access rather than burying innovation under procedural complexity.

Crypto Sprint: The CFTC’s Rapid Integration Program

The change is only one piece of a larger overhaul. Over the past year, the CFTC has been running an aggressive regulatory initiative known as Crypto Sprint, designed to synchronize rules between traditional finance and Web3 environments. The agency’s work has moved the digital asset sector closer to formal legalization than at any point in U.S. history.

Through the initiative, the CFTC has coordinated with the SEC to streamline jurisdictional boundaries, accelerate decision-making, and identify areas where legacy rules no longer make sense. This alignment has already produced major policy shifts and new market approvals.

Market Openings Begin to Multiply

Several milestones arrived in rapid succession.

In December, the CFTC approved Gemini as a Designated Contract Market, granting the exchange the same regulatory status enjoyed by specialized derivatives venues like Kalshi and Polymarket. The certification allows Gemini to expand into prediction markets and other regulated products that were previously off-limits.

A separate ruling earlier this week opened the door for Bitcoin, Ethereum, and USDC to be used as collateral in U.S. derivatives markets—mechanically placing digital assets alongside commodities and treasury products traditionally used as margin. The CFTC also cleared the path for spot crypto trading on exchanges under its purview, something the industry has sought for years.

These decisions collectively give institutional investors the legal clarity they have been waiting for. They also lay the groundwork for deeper integration of crypto into U.S. financial markets, from hedging instruments to settlement flows.

A Transformational Year for U.S. Crypto Policy

The cumulative effect of the CFTC’s actions is unmistakable: crypto is no longer treated as an experimental novelty but as an emerging pillar of American finance. By removing outmoded rules and defining how digital assets fit into established market structures, the agency has accelerated mainstream adoption far faster than many expected.

In the span of a year, the United States has shifted from caution to structural integration—driven largely by coordinated regulatory action rather than legislative gridlock.

While significant challenges remain, the regulatory landscape is finally beginning to resemble the markets it aims to govern: modern, fast-moving, and built for the digital age.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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