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CFTC Limbo

Definition

CFTC Limbo refers to a state of regulatory uncertainty for certain digital assets or crypto-related financial products under the purview of the Commodity Futures Trading Commission. This condition arises when the CFTC has not yet issued definitive guidance or classification, leaving market participants without clear operational rules. Such ambiguity can hinder innovation and investment within the affected sectors, as businesses face compliance risks. It creates operational challenges for businesses seeking to operate within legal boundaries.