Rule2025-17793
Withdrawal of Commission Guidance
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 15, 2025
Issuing agencies
Commodity Futures Trading Commission
Abstract
The Commodity Futures Trading Commission (the "Commission" or "CFTC") is withdrawing final guidance published on October 15, 2024, titled "Commission Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts."
Full Text
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<title>Federal Register, Volume 90 Issue 176 (Monday, September 15, 2025)</title>
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[Federal Register Volume 90, Number 176 (Monday, September 15, 2025)]
[Rules and Regulations]
[Pages 44321-44322]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17793]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 38
RIN 3038-AF63
Withdrawal of Commission Guidance
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of withdrawal of Commission Guidance.
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SUMMARY: The Commodity Futures Trading Commission (the ``Commission''
or ``CFTC'') is withdrawing final guidance published on October 15,
2024, titled ``Commission Guidance Regarding the Listing of Voluntary
Carbon Credit Derivative Contracts.''
DATE: The Commission is withdrawing the final guidance published at 89
FR 83378 (October 15, 2024) as of September 10, 2025.
FOR FURTHER INFORMATION CONTACT: Rahul Varma, Acting Director, (202)
418-5353, <a href="/cdn-cgi/l/email-protection#13616572617e7253707567703d747c65"><span class="__cf_email__" data-cfemail="ef9d998e9d828eaf8c899b8cc1888099">[email protected]</span></a>, Division of Market Oversight, Commodity
Futures Trading Commission, Three Lafayette Centre, 1155 21st Street
NW, Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
Background
On October 15, 2024, the Commission published in the Federal
Register final guidance for designated contract markets (``DCMs'')
regarding the listing of voluntary carbon credit (``VCC'') derivatives
contracts.\1\ Specifically, the final guidance outlined factors for
consideration by DCMs when addressing certain provisions of the
Commodity Exchange Act (``CEA''), and CFTC regulations thereunder, that
are relevant to the design and listing for trading of VCC derivatives
contracts (the ``VCC Guidance''). The VCC Guidance was intended to
assist DCMs with understanding how the Commission's existing regulatory
framework applies to VCC derivatives contracts. The VCC Guidance was
also intended to help DCMs advance the standardization of such products
in a manner that promotes transparency and liquidity.\2\
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\1\ Commission Guidance Regarding the Listing of Voluntary
Carbon Credit Derivative Contracts, 89 FR 83378 (Oct. 15, 2024).
\2\ Id. at 83378 and 83385.
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Withdrawal of Final Guidance
The Commission is withdrawing the VCC Guidance as section 5c of the
CEA and Commission regulations in parts 38 and 40 already set forth the
regulatory framework for listing VCC derivatives contracts.
After careful review, the Commission believes that the VCC Guidance
provides limited value to DCMs when listing VCC derivatives contracts.
The VCC Guidance, which is explicitly non-binding,\3\ does not create
new compliance obligations or product listing standards for DCMs. As
such, the VCC Guidance has not provided DCMs with any new regulatory
structure or standards that resulted in the advancement of market
transparency or liquidity for VCC derivatives contracts.
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\3\ Id. at 83400.
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Further, VCC contracts should be evaluated in the same manner as
any other derivatives contract listed on a DCM. The Commission's review
of VCC derivatives contracts is consistent with its well-established
approach for reviewing all derivatives contracts as set out in parts 38
and 40 of the Commission's regulations. As a result of issuing the VCC
Guidance, the Commission believes that it placed a disproportionate
focus on a particular class of derivative contracts, which could lead
to confusion and inconsistencies in DCMs' implementation of the CEA and
Commission regulations, as well as the Commission's application of the
product listing regulatory frameworks in parts 38 and 40 of its
regulations. A uniform regulatory framework for listing contracts on a
DCM, as already established in the Commission's regulations, best
serves market
[[Page 44322]]
transparency, expectations, fairness, and integrity.
Executive Order 12866
The Office of Management and Budget has determined that this action
is not a significant regulatory action as defined in Executive Order
12866, as amended, and therefore it was not subject to Executive Order
12866 review.
Pursuant to the Congressional Review Act,\4\ the Office of
Information and Regulatory Affairs has designated this rule as not a
``major rule,'' as defined by 5 U.S.C. 804(2).
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\4\ 5 U.S.C. 801 et seq.
Issued in Washington, DC, on September 11, 2025, by the
Commission.
Robert Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Withdrawal of Commission Guidance--Commission Voting
Summary
On this matter, Acting Chairman Pham voted in the affirmative.
No Commissioner voted in the negative.
[FR Doc. 2025-17793 Filed 9-12-25; 8:45 am]
BILLING CODE 6351-01-P
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