NFA Digital Asset Compliance Rule Goes Effective May 31

Starting May 31, National Futures Association ("NFA") Members and Associates that engage in digital asset commodity activities must comply with NFA Compliance Rule 2-51 ("Rule 2-51" or the "Rule") regarding anti-fraud, just and equitable principles of trade, disclosure, and supervision requirements.¹ By adopting Rule 2-51, and in conjunction with NFA Interpretive Notice 9073 for which the Rule specifically requires compliance, the NFA extends its oversight of Members' and Associates' digital asset commodities activities in the digital asset commodity spot markets.²

For purposes of Rule 2-51, "digital asset commodity" or "digital asset commodities" mean Bitcoin and Ether.³ While the Commodity Futures Trading Commission ("CFTC") has identified additional digital assets as commodities, NFA has not included them within the definition of the Rule.⁴ If and when NFA identifies additional digital assets as commodities, the Rule may be amended to include such additional