CFTC Updates Guidance on Tokenized Assets and Blockchain Recordkeeping

The US Commodity Futures Trading Commission has updated its guidance on tokenized assets and blockchain based recordkeeping. In a Thursday notice, the agency said it revised the frequently asked questions covering registered crypto related entities. The guidance, first issued in March, now specifies that authorized companies can invest customer funds in tokenized form, as long as the tokenized asset gives holders legal and economic rights equivalent to the traditional version. The CFTC also said it would not object to companies using blockchain based recordkeeping under the updated rules.

CFTC Chair on Regulatory Clarity

CFTC Chair Michael Selig said the changes aim to provide regulatory clarity for the crypto industry. He did not tie the update directly to the Senate’s failed vote on the CLARITY Act, though the timing followed it closely.

CLARITY Act Failure and Crypto Market Structure

The update came days after the Senate failed to advance the Digital Asset Market Clarity Act, a bill meant to clarify how the CFTC and the Securities and Exchange Commission would share oversight of digital assets. With that cloture vote failing, many now expect Congress won’t pass crypto market structure legislation before 2027, pushing regulators to advance their own rules instead. The CFTC has already submitted a crypto market regulation plan for White House review.

SEC Also Moving on Its Own Rules

SEC Chair Paul Atkins said before the CLARITY vote that his agency was ready, willing and able to propose crypto rules without congressional action. The SEC proposed rules in August covering certain investment contracts involving crypto assets.