On March 28, the staff of the Commodity Futures Trading Commission (CFTC) issued two press releases announcing the withdrawal of two previous advisories that reflected the agency's heightened review approach to digital asset derivatives. 

These announcements appear to mark the end of the CFTC's heightened review of digital asset products. The CFTC rules certainly still apply, but this seems to be a deliberate move by the CFTC to start treating digital asset derivatives like other CFTC-regulated products. It also gives a glimpse of how the CFTC would regulate digital asset spot transactions if Congress gives it the authority to do so.

The first advisory the CFTC withdrew was Staff Advisory No. 18-14, Advisory with Respect to Virtual Currency Derivative Product Listings, which was issued on May 21, 2018. The withdrawal is effective immediately. That advisory provided certain enhancements that CFTC-regulated entities were asked to follow when listing digital asset derivatives. These included enhanced market surveillance, closer coordination with the CFTC, reporting obligations, risk management and outreach to members and market participants. That advisory was withdrawn in its entirety, with the CFTC staff citing its increased experience with digital asset derivatives and that the digital asset industry has increased in market growth and maturity.

The second advisory the CFTC staff withdrew was Staff Advisory No. 23-07, Review of Risks Associated with Expansion of DCO Clearing of Digital Assets, issued on May 30, 2023. It stated that CFTC staff would focus on the heightened risks of digital asset derivatives to system safeguards, fiscal settlement procedures and conflicts of interest.