CFTC says US commodities firms can put customer funds in tokenized assets
CFTC opens the door to tokenized assets in customer funds
The U.S. Commodity Futures Trading Commission issued updated guidance on Thursday saying that CFTC-regulated platforms can invest customer funds in tokenized versions of assets that are already allowed.
Tokenized assets are digital tokens that represent a real-world asset, such as a commodity or security, on a blockchain — a shared digital ledger that records transactions.
The agency also said blockchain records are acceptable for meeting recordkeeping rules. The guidance was first reported by CoinDesk and is based on the CFTC's own press release and updated questions-and-answers.
What the CFTC guidance allows
- Firms supervised by the CFTC can invest customer funds in tokenized forms of assets that already qualify as permissible.
- The tokenized asset must give its holder legal and economic rights that are the same as, or functionally equivalent to, the rights held by owners of the traditional version of the asset.
- The assets must be properly held.
- CFTC staff said they "would not object" if a records entity used blockchain or distributed ledger technology to create and keep onchain records and meet its recordkeeping duties.
- That position covers any CFTC regulations that involve recordkeeping and the maintenance of regulatory data.
Blockchain records and the limits attached
Under the guidance, firms may not even need to keep offchain copies of their records if they use a private network, according to the document.
For public and permissionless blockchains — networks that anyone can access and use — the CFTC said a regulated business "should establish systems and controls that enable it to retain and produce such records under any circumstances, including in the event of an emergency or other disruption to the network."
What CFTC Chairman Mike Selig said
CFTC Chairman Mike Selig described the change as part of the agency's wider effort to give the crypto industry clearer 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 said in a statement.
Why the timing matters
The guidance follows the U.S. Senate's failure last week to move forward the Digital Asset Market Clarity Act, a bill that would have created a U.S. regulatory framework for the industry and given the CFTC power over crypto spot markets.
That spot market authority remains a regulatory gap for the sector, and the CFTC has been moving quickly to set crypto policy through updated views on existing rules and new rulemaking.
What is confirmed
It is confirmed that the CFTC issued the guidance on Thursday, that it covers customer fund investments in tokenized assets meeting the stated rights and custody conditions, and that CFTC staff said they would not object to blockchain-based recordkeeping. Selig's statement about the updated frequently asked questions is also confirmed.
What is still unclear
The supplied material does not list which specific assets qualify as permissible or explain how firms should show that a token grants equivalent rights. It also does not say how the requirement to keep and produce records during a network emergency would be tested, or whether the guidance is a final policy or staff-level advice that could change.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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