The recent and rapid proliferation of cryptocurrency transactions involving retail or “Main Street” customers has left some — including many cryptocurrency platforms serving retail customers — grappling conceptually with the answer to a fundamental question: what constitutes “actual delivery” of cryptocurrency in the eyes of the U.S. Commodity Futures Trading Commission (CFTC) for purposes of the “actual delivery exemption” from registration with the CFTC?
In December 2017, in response to requests for guidance, the CFTC issued a proposed interpretation of “actual delivery” in the cryptocurrency retail commodity transaction context. The public has until March 20, 2018 to provide comments to the CFTC’s Proposed Interpretation. This article discusses; (a) the CFTC’s current Proposed Interpretation; (b) why the Proposed Interpretation matters to the cryptocurrency industry, and (c) some practical related questions that arguably remain to be explored.
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