Commodity Futures Trading Commission (CFTC) was very active on the final business day before the globe’s largest futures market maker, CME Group Inc., is to begin its entrance into bitcoin contracts. The regulator created a website devoted to bitcoin, and it issued new cryptocurrency rules of compliance for public comment.

Release pr7664-17, Proposed Interpretation on Virtual Currency “Actual Delivery” in Retail Transactions, concerns “its authority over retail commodity transactions involving virtual currency, such as bitcoin,” the CFTC statement began. In it, they set “out the CFTC’s view regarding the ‘actual delivery’ exception that may apply to virtual currency transactions.”

The CFTC has long held bitcoin to be a commodity as defined within the Commodity Exchange Act (CEA).

It is clarifying what that means as market makers under its purview now that Cboe (last Sunday), CME (Monday), Nasdaq (middle of next year), and Cantor Fitzgerald (next year) are moving full-steam ahead to meet an insatiable demand for bitcoin. Broadly speaking, the CEA gives muscle to the CFTC, allowing it to oversee bitcoin/crypto futures on the retail side.

The proposed rules of 15 December 2017 exempt contracts if they’re delivered within 28 days. They establish “two primary factors necessary to demonstrate ‘actual delivery’ of retail commodity transactions in virtual currency: (1) a customer having the ability to: (i) take possession and control of the entire quantity of the commodity, whether it was purchased on margin, or using leverage, or any other financing arrangement, and (ii) use it freely in commerce (both within and away from any particular platform) no later than 28 days from the date of the transaction,” the statement outlined. Read more from news.bitcoin.com…

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