Sidley Updates

NFA Establishes Rule for Members Engaging in Digital Asset Activities, Including in the Spot Market

April 12, 2023

On March 29, 2023, the National Futures Association (NFA) issued a new rule, Compliance Rule 2-51 (Rule 2-51, or the Rule), applicable to NFA member firms and associated persons (Members and Associates) engaging in activities involving “digital asset commodities.” The Rule imposes anti-fraud, just and equitable principles of trade, and supervision requirements on Members and Associates and codifies Members’ existing disclosure obligations under NFA Interpretative Notice 9073. The Rule becomes effective on May 31, 2023.

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Knowledge Management Lawyer Daniel Engoren contributed to this Sidley Update. If you have any questions regarding this Sidley Update, please contact the Sidley lawyer with whom you usually work, or