March 25, 2020 The CFTC has finalized its definition of what constitutes “actual delivery” of digital assets.

On Tuesday, The U.S. Commodity Futures Trading Commission (CFTC) released its ultimate guidance on what constitutes “actual delivery” of digital assets. In its 35 page document, the financial regulator defined the term as when a recipient has both possession and control of the “the entire quantity of the commodity” and can use said asset in commerce 28 days after the transaction while the seller or offeror retains no legal right or control over the asset after the 28 day period. The definition of “actual delivery” has been considered a point of contention within the cryptoasset industry and Tuesday’s final decision may help facilitate further business development. In 2016, Steptoe & Johnson LLP sued the regulator over its decision to charge the cryptoasset exchange, Bitfinex for not relinquishing full control over private keys to cryptoassets that it supposedly delivered, with Bitfinex settling and paying a $75,000 fine. It is expected that Tuesday’s clarification should help prevent such future cases with the CFTC’s Charman Heath Tarbert adding that the regulator seeks to provide “clarity to market participants” and that it believes the “the U.S. must be a leader in the digital asset space” to which this definition should help.

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