CFTC Proposes 28-Day Rule for Crypto Wallet Deliveries

CFTC Chair Michael Selig has outlined a regulatory plan that focuses on clarifying how crypto assets delivered to personal wallets within 28 days qualify for the actual delivery exception. The proposal centers on registered intermediaries, known as futures commission merchants (FCMs), handling covered retail crypto transactions. These intermediaries would need to meet several requirements, including keeping customer assets separate, ensuring capital adequacy, implementing anti-money laundering measures, and providing proof of reserves.

The 28-day delivery standard aims to ensure that crypto assets come under the user’s control, qualifying for the exception under transaction rules. However, it does not impose a general withdrawal requirement on all crypto users. Selig also mentioned that software developers who do not hold customer assets or control transactions would have a separate regulatory policy.

The CFTC chair referenced the agency’s joint crypto asset classification with the SEC, listing Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Stellar (XLM), Tezos (XTZ), and XRP as examples of digital commodities. This classification is based on existing guidelines, while details on intermediaries and delivery are still under proposal.