Withdrawal of CFTC Staff Advisory 23-07 on Digital Asset Clearing Risks

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CFTC Letter No. 25-08 Advisories March 28, 2025 U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5430 Facsimile: (202) 418-5547 www.cftc.gov Division of Clearing and Risk Re: Withdrawal of CFTC Staff Advisory 23-07 The Division of Clearing and Risk (“DCR”) of the Commodity Futures Trading Commission (“CFTC”) hereby withdraws CFTC Staff Advisory 23-07, Review of Risks Associated with Expansion of DCO Clearing of Digital Assets (“Advisory”). The Advisory, noting increased industry interest in new clearing activities related to digital assets, stated that in connection with these activities, “DCO registrants and applicants should expect that DCR will be placing emphasis on the potential risks and DCO core principles related to system safeguards, physical settlement procedures, and conflicts of interest,” and then elaborated on those areas of emphasis. DCR is withdrawing the Advisory to ensure that it does not suggest that its regulatory treatment of digital asset derivatives will vary from its treatment of other products. DCR conducts its supervision of clearing activities and oversight of compliance with the Commodity Exchange Act and Commission regulations consistently, regardless of the specific commodity underlying relevant contracts. This withdrawal will not impact DCR’s ability to oversee the financial integrity of cleared transactions and avoidance of systemic risk in the derivatives markets, while promoting responsible innovation. DCR encourages market participants to continue their customary open communications with staff regarding the clearing of digital asset derivatives. If you have any questions regarding the withdrawal of the Advisory, please contact Tad Polley, Supervisory Attorney Advisor, DCR, at tpolley@cftc.gov. Sincerely, Richard Haynes Acting Director Division of Clearing and Risk