On October 17, 2025, the National Futures Association (“NFA”) announced a proposal to repeal requirements that firms that are registered with the Commodity Futures Trading Commission (“CFTC”) must make certain disclosures to customers regarding virtual currency activities.

The repeal of the disclosure requirements will take effect 10 days after the CFTC receives NFA’s proposal, unless the CFTC takes action to substantively review the change.[1]

Background

NFA is the self-regulatory organization for the derivatives industry. ln 2018, NFA adopted disclosure requirements for member firms that were engaging in virtual currency activities.[2] Futures commission merchants and introducing brokers that engaged in spot virtual currency activities were required to inform customers of the limits to NFA’s regulatory authority, including that NFA did not have authority over spot virtual currency transactions engaged in with an NFA member. NFA also required commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) to provide a standardized disclosure regarding the limits of NFA’s jurisdiction.

Additionally, CPOs and CTAs were required to consider the risks arising from their activities in virtual currencies and customize their disclosure documents and other materials to address those risks. NFA provided an extensive list of potential risk areas and disclosure language that CPOs and CTAs were required to consider.

2025 Changes

At its August 2025 meeting, NFA determined that the disclosure requirements for virtual currency activities were outdated and proposed to repeal them. NFA further stated that the repeal of the disclosure requirements will not relieve CPOs and CTAs from the obligation of appropriately disclosing the material risks related to its offerings.

Among other reasons, NFA explained that a 2023 rule change imposed anti-fraud, just and equitable principles of trade, and supervision requirements on NFA members engaging in virtual currency activities.[3] Therefore, NFA now has clear jurisdiction to discipline a member firm or take other appropriate action to protect customers in the event a firm commits fraud or similar misconduct with respect to its virtual currency activities.

Additionally, NFA noted that the risks associated with virtual currencies continue to evolve, and any list provided to member firms would need to be updated to reflect recent developments.

Takeaways

The repeal of the specialized disclosure requirements for virtual currency activities by CFTC registrants demonstrates the thoroughness of the regulatory sector’s embrace of President Donald Trump’s fundamental shift in federal policy on digital assets. It follows in the footsteps of federal agencies such as the Securities and Exchange Commission, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency, as well as the CFTC itself.

NFA notes that it intends to seek input from the derivatives market on new disclosure requirements for virtual currency activities by CFTC registrants. We expect that new disclosure requirements, if adopted, will be less prescriptive than the prior requirements.

[1] See 7 U.S.C. § 21(j).

[2] Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities, NFA Interpretive Notice 9073 (May 17, 2018).

[3] See NFA Compliance Rules § 2-51.