At the Intersection of Technology, Law, and Business
March 27, 2020 - Blockchain, Fintech

CFTC Issues Final "Actual Delivery" Interpretation for Virtual Currencies

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On March 24, 2020, the Commodity Futures Trading Commission (“CFTC”) issued its final interpretive guidance (the “Interpretation”) concerning the meaning of “actual delivery” in the context of retail commodity transactions involving “virtual currencies.” The Interpretation provides that, in the CFTC’s view, actual delivery of retail commodity transactions in virtual currency has occurred where, within 28 days, (1) a customer has possession and control of the full amount of virtual currency and is able to use it freely and (2) the offeror and counterparty seller do not retain any interest in, legal right or control over the virtual currency. Building on other guidance concerning what constitutes “actual delivery” in the context of retail commodity transactions, the Interpretation provides greater certainty regarding whether retail virtual currency transactions are exempt from CFTC regulation.

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