The CFTC has issued new guidance on “actual delivery” of virtual currencies. The CFTC has long held that commodities must be physically delivered within 28 days of the contract of sale to fall outside of the regulation of contracts under the Commodities Exchange Act. In this new guidance, the CFTC concludes that possession and control of the digital asset must transfer to the buyer within 28 days to satisfy the requirements of actual delivery. In their article, Baker McKenzie partner Sam Kramer, and Matt Kluchenek, discuss the guidance and why the requirements of both possession and control are inapt for determining the actual delivery of virtual currencies.
Sam Kramer focuses his practice on multi-jurisdictional outsourcing, complex technology licensing, commercial contracting, and supply chain agreements and integration. He is frequently involved in outsourcing transactions and large scale IT services projects. Mr. Kramer also focuses on emerging technology services, including mobile virtual network operator (MVNO) transactions. He is the North American coordinator of the Firm’s MVNO practice.