CFTC Updates Guidance on Tokenized Assets and Blockchain Recordkeeping

CFTC updates guidance — The U.S. Commodity Futures Trading Commission (CFTC) has updated its guidance for registered crypto entities, clarifying rules for tokenized asset investments and blockchain-based recordkeeping.

The regulator stated in a Thursday notice that authorized companies may invest customer funds in tokenized forms, provided the tokenized asset grants the holder legal and economic rights that are “the same or functionally equivalent” to the rights of holding the asset in its traditional form. The CFTC added it “would not object” to firms using blockchain technology for recordkeeping under the new rules.

CFTC Chair Michael Selig said the changes were part of efforts “to provide regulatory clarity for the crypto industry.” The update follows the recent failure of the U.S. Senate to advance the Digital Asset Market Clarity (CLARITY) Act, a bill that would have defined the roles of the CFTC and Securities and Exchange Commission in overseeing digital assets.

With the legislative path stalled, regulators are moving forward with their own rulemaking. The CFTC has already submitted a crypto market regulation plan for White House review. SEC Chair Paul Atkins also stated before the CLARITY vote that his agency was prepared to propose crypto rules in the absence of congressional action.