CFTC Clarifies Use of Compliant Tokenized Assets for Customer Funds
Updated FAQs also recognize blockchain-based records as a way for registrants to meet federal recordkeeping requirements.
The Commodity Futures Trading Commission updated its crypto asset FAQs to clarify that registered derivatives firms may use compliant tokenized forms of permitted investments when handling customer funds, expanding the role of blockchain-based financial products in U.S. markets.
The guidance addresses tokenized interests in money market funds and other assets already allowed under CFTC rules. Eligible tokenized investments must meet the same applicable regulatory requirements as their traditional counterparts, including the rights associated with the underlying assets.
CFTC staff also said they would not object to the use of blockchain and other distributed-ledger technologies to meet federal recordkeeping requirements. The update was issued jointly by the Market Participants Division, Division of Market Oversight and Division of Clearing and Risk.
The FAQs were originally released in March and were updated Sept. 24 as the agency provided additional clarity on crypto assets, tokenized collateral and blockchain infrastructure. The change does not create a new category of permitted customer-fund investments; it clarifies that tokenized versions of already permitted assets may be treated in the same manner as traditional forms when the applicable conditions are met.
