Key facts
- The CFTC updated guidance on tokenized assets and blockchain recordkeeping.
- Companies can invest customer funds in tokenized assets if the token grants equivalent rights.
- The CFTC will not object to companies using blockchain-based recordkeeping.
- The US Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act.
The US Commodity Futures Trading Commission (CFTC) has updated its guidance concerning tokenized assets and the use of blockchain technology for recordkeeping. In a notice released on Thursday, the agency specified that authorized companies may invest customer funds in tokenized asset forms, provided these tokens offer the same or functionally equivalent legal and economic rights as the traditional asset. The CFTC also indicated it would not object to companies employing blockchain-based recordkeeping under these updated rules.
CFTC Chair Michael Selig stated that these modifications are intended to offer greater regulatory clarity to the cryptocurrency industry. This development follows closely after the US Senate's failure to advance the Digital Asset Market Clarity (CLARITY) Act, a bill designed to define the oversight roles of the CFTC and the Securities and Exchange Commission (SEC) in the digital asset space. With the legislative path for crypto market structure legislation appearing stalled until at least 2027, regulators are expected to proceed with policy advancements through their own rulemaking processes. The CFTC has already submitted a plan for crypto market regulation to the White House for review. Similarly, SEC Chair Paul Atkins had previously indicated the agency's readiness to propose rules for crypto assets in the absence of congressional action, with the SEC having proposed rules on certain investment contracts involving crypto assets in August.