CFTC clarifies rules for tokenized assets and blockchain records after Senate vote fails
CFTC allows tokenized assets and blockchain ledgers in new guidance
The US Commodity Futures Trading Commission (CFTC) has updated its regulatory guidance to clarify how registered crypto entities can manage customer funds and records. The update specifically addresses the use of tokenized assets and blockchain technology for recordkeeping. This move follows the recent failure of the US Senate to advance the Digital Asset Market Clarity (CLARITY) Act, a bill that was expected to define the roles of federal regulators in overseeing digital assets.
Key changes in the regulatory update
- The CFTC specified that authorized companies may invest customer funds in tokenized forms. This is permitted only if the tokenized asset grants holders legal and economic rights that are the same or functionally equivalent to the rights of holders of the traditional asset.
- The regulator stated it would not object to companies using blockchain-based recordkeeping under the new rules. A blockchain is a type of digital ledger that records transactions securely and transparently.
- CFTC Chair Michael Selig described the changes as an effort to provide regulatory clarity for the crypto industry.
Regulatory response to stalled legislation
The update came days after the US Senate failed to pass the necessary vote to advance the CLARITY Act. The bill was expected to clarify how the CFTC and the Securities and Exchange Commission (SEC) would oversee digital assets. Because the legislative effort stalled, many expect Congress will not pass crypto market structure laws before 2027. Consequently, regulators are advancing their own policies through rulemaking. The CFTC has already submitted a crypto market regulation plan for White House review. SEC Chair Paul Atkins also stated that his agency is ready, willing, and able to propose crypto rules in the absence of congressional action, having proposed rules on certain investment contracts involving crypto assets in August.
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