The US Commodity Futures Trading Commission (CFTC) has updated its guidance to allow registered derivatives firms to invest customer funds in eligible tokenized assets and use blockchain technology to meet regulatory recordkeeping requirements.
The update, released on September 24, comes just days after the US Senate failed to advance the CLARITY Act, leaving regulators to develop parts of the country’s crypto framework through existing authority rather than new legislation.
CFTC clarifies rules for tokenized investments
The updated frequently asked questions address how registered firms can use tokenized versions of assets that are already permitted under existing regulations.
Futures commission merchants and derivatives clearing organisations can invest customer funds in tokenized assets, provided the tokens grant holders legal and economic rights that are the same as, or functionally equivalent to, those attached to the underlying traditional assets.
Eligible investments may include tokenized versions of US Treasury and agency securities, corporate bonds, money market fund shares and equities, depending on the applicable requirements. The guidance does not create unrestricted permission to invest customer funds in any digital asset.
This distinction is important because tokenisation changes how an asset is represented and transferred, but it does not automatically give the token the same legal status or rights as the original asset.
Under the updated guidance, firms must assess whether the tokenised version provides equivalent protections and economic interests before treating it as an eligible investment.
Blockchain can support regulatory recordkeeping
The CFTC also clarified that registered firms can use blockchain technology to satisfy their recordkeeping obligations.
This allows firms to maintain required records using distributed ledger technology, provided the systems meet applicable regulatory standards. The guidance addresses considerations surrounding blockchain-based records, including how firms should maintain access to information and prepare for potential disruptions.
The move could support greater use of blockchain infrastructure in regulated derivatives markets, where firms must maintain reliable records of transactions, positions and other activities for compliance and supervision.
However, the update is staff guidance rather than a new law or comprehensive regulatory framework. It clarifies how existing requirements may apply to tokenized assets and blockchain systems without replacing those requirements.
Update follows failed CLARITY Act vote
The CFTC’s announcement comes after the Senate failed to advance the CLARITY Act on September 15.
The proposed legislation was designed to establish a clearer division of regulatory responsibilities between the CFTC and the Securities and Exchange Commission (SEC), including rules for digital commodities and crypto market oversight.
Its failure left significant parts of the proposed framework unresolved. The CFTC and SEC have since continued working through regulatory guidance and other measures within their existing mandates.
The latest CFTC update therefore provides a route for registered firms to adopt tokenized assets and blockchain recordkeeping without waiting for Congress to pass a comprehensive crypto market structure law.
However, agency guidance is different from legislation. Its scope depends on existing statutory authority and may be changed through future regulatory action or replaced by new laws.
CFTC continues work on digital asset regulation
CFTC Chairman Michael Selig described the updated FAQs as part of the agency’s ongoing effort to provide regulatory clarity for the crypto industry.
The guidance builds on earlier CFTC materials covering tokenized collateral and the use of digital assets as margin collateral. Together, these measures indicate that the agency is addressing specific uses of blockchain and tokenized assets under existing rules while Congress continues debating wider market reforms.
For derivatives firms, the update offers clearer guidance on two practical areas: investing customer funds in eligible tokenized assets and maintaining regulatory records on blockchain networks.
It does not, however, resolve every question surrounding digital asset market structure, custody, investor protection or the division of authority between US financial regulators.
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