Definition ∞ A retail commodity transaction involves the purchase or sale of a commodity, such as precious metals or agricultural products, by individual consumers rather than institutional investors. These transactions are typically smaller in scale and often involve physical delivery or cash settlement. They allow individual participants to gain exposure to commodity markets. Regulatory oversight often focuses on consumer protection in these markets.
Context ∞ The classification of certain digital assets, particularly those not deemed securities, as retail commodity transactions is a significant regulatory point, especially in jurisdictions like the United States. Discussions frequently involve the appropriate regulatory body for oversight, such as the Commodity Futures Trading Commission. Clarifying this classification is crucial for establishing clear rules for digital asset exchanges and protecting individual investors.
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