CFTC expands guidance to allow tokenized asset investments, blockchain records

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CFTC expands tokenization guidance

Highlights

The CFTC allows regulated platforms to invest customer funds in tokenized assets, provided those tokens mirror legal and economic rights of traditional assets.
CFTC staff clarify no objection to using blockchain or distributed ledger technology for creating and maintaining onchain records to satisfy regulatory recordkeeping requirements.
The updated guidance comes as the U.S. Senate failed to advance the Digital Asset Market Clarity Act, leaving the CFTC without explicit authority over crypto spot markets.

Guidance covers tokenized assets and onchain records

As reported by CoinDesk, citing the U.S. Commodity Futures Trading Commission, regulated platforms can invest customer funds in tokenized versions of assets that are already permissible under existing rules. The agency says those tokenized assets must give holders legal and economic rights that are the same as, or functionally equivalent to, the rights attached to the traditional form of the asset, and they must be properly held.

The regulator also says its staff would not object if a records entity uses blockchain, or distributed ledger technology, to create and maintain onchain records for compliance purposes. The clarification applies across CFTC regulations that require recordkeeping and maintenance of regulatory data, according to the agency.

Crypto policy push follows U.S. Senate setback

The move fits into a broader series of crypto-related policy steps by the CFTC as it signals a more accommodating stance toward blockchain use in derivatives markets. The agency is working through both updated interpretations of current regulations and possible new rules for the sector.

The push becomes more urgent after the U.S. Senate fails last week to advance the Digital Asset Market Clarity Act, which would have created a U.S. regulatory framework for the industry and given the CFTC authority over crypto spot markets. That gap remains a key unresolved issue for the sector.

CFTC Chairman Mike Selig says in a statement that he is pleased to see staff update the frequently asked questions in line with the agency's ongoing effort to provide regulatory clarity for the crypto industry.

Our earlier coverage of the Federal Reserve’s proposed stablecoin oversight rules explained how the GENIUS Act framework would be implemented for dollar-backed tokens. We outlined the planned requirements for reserve backing, capital and custody standards for supervised issuers and banks, along with a 60-day public comment period before the rules are finalized.

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