U.S. commodities firms can invest in tokenized assets, use blockchain records: CFTC

The Commodity Futures Trading Commission has issued updated guidance clarifying how tokenization and blockchain-based records can be used by firms it oversees. The agency told regulated platforms that customer funds may be invested in tokenized forms of assets that are already permissible under CFTC rules, but only if the tokenized version confers legal and economic rights equivalent to the underlying asset and the assets are appropriately held.

Separately, the CFTC set out its view on using distributed ledger technologies for official recordkeeping. Agency staff said they would not object to records entities employing blockchains or other distributed ledgers to create and maintain on-chain records to meet the commission’s recordkeeping and regulatory data maintenance requirements.

The guidance distinguishes between private and public blockchains. For private networks, firms may not need separate off-chain copies of records. For public, permissionless blockchains, the CFTC expects regulated businesses to have systems and controls that allow them to retain and produce required records under any circumstances, including emergencies or disruptions to the network.

The updates come as the CFTC continues to refine crypto-focused policy, producing frequently asked questions and other materials to clarify how existing rules apply to digital-asset activity. Agency chair Mike Selig framed the revisions as part of the commission’s effort to provide regulatory clarity to the industry. The guidance arrives amid a broader legislative stall: the U.S. Senate recently failed to advance the Digital Asset Market Clarity Act, leaving aspects of crypto market oversight unresolved.