CFTC Updates Guidance for Tokenized Assets and Blockchain Records
The updated FAQs cover customer-fund investments in tokenized permitted assets and blockchain-based regulatory records but do not create binding rules.
The Commodity Futures Trading Commission updated staff FAQs Thursday to address customer-fund investments in tokenized permitted assets and blockchain-based regulatory recordkeeping, expanding a framework for technology use in U.S. derivatives markets.
The FAQs cover tokenized versions of assets that may already qualify under existing rules, including U.S. Treasury and agency securities, corporate bonds, money-market-fund shares and equities. The tokenized form must provide legal and economic rights that are the same as, or functionally equivalent to, the traditional asset.
The guidance also emphasizes requirements for legal enforceability, custody, segregation, control, valuation, haircuts and operational risk. It applies to activities overseen by the CFTC and builds on FAQs first issued March 20, including issues addressed in Staff Letter 25-39 on tokenized collateral and Staff Letter 26-05 on certain digital assets accepted as margin collateral.
The updated material does not create new binding rules, amend existing regulations or establish enforceable rights. It reflects the views of the CFTC divisions that issued it.
CFTC Chairman Michael S. Selig said, “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.”
