Notices to Members

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Notice I-23-10

March 29, 2023

Effective date for NFA rule establishing requirements for Members engaged in digital asset commodity activities

NFA recently adopted NFA Compliance Rule 2-51, which imposes anti-fraud, just and equitable principles of trade, and supervision requirements on NFA Members and Associates that engage in digital asset commodity activities. The Rule's scope is currently limited to Bitcoin and Ether. The Rule also specifically references a Member's existing obligation to comply with NFA's Interpretive Notice 9073—Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities. NFA Compliance Rule 2-51 becomes effective on May 31, 2023.

Currently, over 100 NFA Members have reported to NFA that they engage in digital asset-related business activities, both in commodity interest and spot markets. Except for NFA Interpretive Notice 9073, NFA does not impose any specific requirements on Members with respect to their spot digital asset commodity activities. Therefore, NFA's Board determined to adopt NFA Compliance Rule 2-51 to provide NFA with the ability to discipline a Member or take other action to protect the public if a Member commits fraud or similar misconduct with respect to its spot digital asset commodity activities.

The Rule also requires Members and supervisory Associates to diligently supervise these activities. Therefore, Members engaged in spot digital asset commodity activities must adopt and implement appropriate supervisory policies and procedures over these activities.

NFA's CPO/CTA, FCM, IB and Swap Participant Advisory Committees supported the adoption of NFA Compliance Rule 2-51, which was unanimously approved by the Board.

NFA's February 28, 2023 submission letter to the CFTC contains more detailed information regarding NFA Compliance Rule 2-51. If you have any questions regarding NFA Compliance Rule 2-51, please contact Mike Schorsch, Assistant General Counsel ( or 312-781-1360).

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