The U.S. Commodity Futures Trading Commission issued updated guidance Thursday clarifying that regulated firms may invest customer funds in tokenized assets and use blockchain technology for official recordkeeping without facing enforcement action.
The move marks a significant step toward regulatory clarity in derivatives markets. CFTC Chairman Mike Selig said the agency remains committed to supporting the crypto industry through transparent rules. “I’m pleased to see staff update these frequently asked questions consistent with the agency’s ongoing efforts to provide regulatory clarity for the crypto industry,” Selig stated.
Tokenized Asset Requirements
Under the guidance, tokenized assets must grant holders legal and economic rights that are the same or functionally equivalent to rights received by holders of the asset in traditional form. This equivalence standard ensures that tokenization does not diminish investor protections or alter the fundamental economics of the underlying asset.
The CFTC guidance applies to any CFTC regulations involving recordkeeping and maintenance of regulatory data, establishing a framework that covers the full scope of derivatives oversight.
Blockchain Recordkeeping Standards
The CFTC outlined divergent standards depending on blockchain type. Firms using private blockchain networks may not need to maintain offchain versions of records, streamlining compliance for permissioned systems. For public and permissionless blockchains, regulated businesses must establish systems and controls to retain and produce records under any circumstances, including network emergencies or disruptions. This requirement ensures regulatory data remains accessible even during blockchain network outages or other adverse events.
Legislative Context
The guidance comes after the U.S. Senate failed last week to advance the Digital Asset Market Clarity Act, which would have granted the CFTC expanded powers over crypto spot markets. The regulatory clarification through guidance thus provides clarity where legislative expansion stalled, allowing the CFTC to delineate permissible practices within its existing authority rather than awaiting new congressional mandates.
