CFTC Withdraws Regulatory Guidance on Voluntary Carbon Credit Derivative Contracts

The Commodity Futures Trading Commission (CFTC) has officially announced the withdrawal of its regulatory document titled "Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts." In its notice of withdrawal, the federal regulator stated that existing provisions under Section 5c of the Commodity Exchange Act (CEA), along with CFTC Regulations at Parts 38 and 40, already provide the comprehensive framework required for listing derivative contracts. This existing regulatory structure applies to all listed derivatives, including voluntary carbon credit (VCC) derivative products. The CFTC determined that maintaining dedicated guidance resulted in a disproportionate focus on VCC derivative contracts. According to the agency, this targeted approach created the potential for confusion and inconsistencies in the application of the regulator's established, long-standing product listing rules.