CFTC draft just dropped a massive W for self-custody
If you deliver assets onchain to your own wallet = actual delivery = NOT subject to leveraged retail commodity rules
This is huge for DeFi and CEX withdrawal flows. Means exchanges can let you withdraw spot crypto without triggering CFTC leverage restrictions.
"Live and Let Live" approach to market structure. Rare regulatory common sense.
Still just a proposal though. Comment period is where this gets stress-tested by industry and lawyers. Watch this space - could set the precedent for how US treats onchain settlement vs paper trading.
Bullish for self-custody. Bearish for overreach.
If you deliver assets onchain to your own wallet = actual delivery = NOT subject to leveraged retail commodity rules
This is huge for DeFi and CEX withdrawal flows. Means exchanges can let you withdraw spot crypto without triggering CFTC leverage restrictions.
"Live and Let Live" approach to market structure. Rare regulatory common sense.
Still just a proposal though. Comment period is where this gets stress-tested by industry and lawyers. Watch this space - could set the precedent for how US treats onchain settlement vs paper trading.
Bullish for self-custody. Bearish for overreach.