Briefing
The National Futures Association (NFA) has proposed to the CFTC the repeal of Interpretive Notice 9073, a prescriptive digital asset risk disclosure requirement, in favor of amending Compliance Rule 2-51 to establish broader, principles-based conduct standards. This strategic pivot integrates digital asset activities, particularly those involving CFTC-regulated contracts, into the NFA’s core, long-standing conduct framework, requiring firms to shift from checklist-based compliance to a systemic, defensible, and principles-based posture, with the change expected to become effective by the end of October 2025.
Context
Prior to this proposal, NFA members operating in the digital asset space were subject to the specific, detailed requirements of Interpretive Notice 9073, which mandated a short-form disclosure for promotional materials related to virtual currency activities. This prescriptive approach created a bifurcated compliance challenge, separating digital asset disclosures from the general conduct standards governing other regulated products. The prevailing uncertainty stemmed from the need to manage two distinct compliance regimes → one for traditional derivatives and one for digital assets → hindering the integration of digital asset risk management into core operational systems.
Analysis
The repeal of Notice 9073 fundamentally alters the operational requirements for NFA members by eliminating the specific, mandatory short-form disclosure. This action shifts the compliance burden from satisfying a check-the-box requirement to meeting the principles-based prohibitions on fraudulent or misleading statements embedded in the amended Compliance Rule 2-51. Regulated entities must now update their compliance frameworks to ensure marketing materials and disclosures for all digital asset activities, including those involving CFTC-regulated contracts, adhere to the broader “just and equitable principles of trade” standard. The primary impact is the need for CPOs and CTAs to conduct a full audit of all marketing and promotional materials, embedding digital asset risk disclosures directly into their enterprise-wide compliance and supervision systems.
Parameters
- Repealed Document → Interpretive Notice 9073. Explanation → The specific NFA guidance document outlining prescriptive digital asset risk-disclosure requirements.
- Amended Rule → Compliance Rule 2-51. Explanation → The NFA rule that now extends broad conduct standards to all digital asset activities involving CFTC-regulated contracts.
- Target Entities → NFA Members (CPOs/CTAs). Explanation → CFTC-registered commodity pool operators and trading advisers subject to the NFA’s compliance oversight.
- Effective Date Estimate → End of October 2025. Explanation → The anticipated timeframe for the proposal to take effect following CFTC review.
Outlook
The NFA’s move signals a mature regulatory approach that prioritizes systemic conduct standards over isolated, prescriptive disclosure rules, aligning digital asset oversight with traditional finance frameworks. This precedent is likely to influence other self-regulatory organizations (SROs) and potentially the SEC, pushing for a similar integration of digital assets into existing, principles-based conduct rules. The next phase involves the CFTC’s formal review and approval, after which NFA members must immediately operationalize the new standard, with a key strategic focus being the defensibility of their new principles-based risk mitigation controls in any future NFA or CFTC examination.
Verdict
This shift from prescriptive disclosure to principles-based conduct standards marks a critical maturation of US digital asset compliance, requiring immediate, systemic operational integration by regulated firms.
