CFTC staff update guidance to allow tokenized investments and blockchain recordkeeping
Commodity Futures Trading Commission staff have updated their cryptocurrency guidance, permitting futures brokers and clearinghouses to invest customer funds in tokenized forms of approved assets and store regulatory records entirely onchain.
Three divisions of the Commodity Futures Trading Commission (CFTC) updated the agency's crypto asset frequently asked questions to permit futures commission merchants and derivatives clearing organizations to invest customer money in tokenized versions of assets permitted under Regulation 1.25. Under the staff guidance, tokenized investments qualify if the underlying asset is permitted, token holders have legal and economic rights functionally equivalent to the traditional asset, the investment satisfies liquidity, maturity, and concentration limits, and the tokens are held with an acceptable depository. For tokenized government money market funds, staff stated that firms are expected to secure a written acknowledgment letter from the custodian.[2][4][1][6]
The guidance also clarified that CFTC recordkeeping rules Regulation 1.31 and Regulation 45.2 are technology-neutral, allowing regulated firms to create and maintain required records exclusively onchain without maintaining offchain copies. However, entities utilizing public, permissionless blockchains must ensure they can still produce records for CFTC examination if the network or its block explorer becomes unavailable. The recordkeeping additions referenced comments received from dYdX Labs, the Blockchain Association, and the Solana Policy Institute following a June request for information associated with Executive Order 14405.[2][3]
CFTC Chairman Michael Selig characterized the updates as part of ongoing efforts to deliver regulatory clarity for the crypto sector. The update explicitly maintains that payment stablecoins do not qualify as permitted investments for customer funds under Regulation 1.25. The staff answers do not constitute binding commission rules and follow the stalling of the Clarity Act in the U.S. Senate.[2][1][5][3]
Key facts
- CFTC staff updated their crypto FAQs to permit futures commission merchants and clearinghouses to invest customer funds in tokenized versions of permitted assets under Regulation 1.25.
- Tokenized investments qualify if the underlying asset is permitted, legal and economic rights are equivalent to the traditional version, liquidity and maturity limits are met, and tokens are stored with an acceptable depository.
- CFTC recordkeeping regulations are technology-neutral, permitting firms to store records exclusively onchain without offchain backups, provided records remain accessible if the network fails.
- Payment stablecoins remain excluded from the list of permitted customer fund investments under Regulation 1.25.
- The recordkeeping answers cited responses from dYdX Labs, the Blockchain Association, and the Solana Policy Institute tied to Executive Order 14405.
- The guidance represents non-binding staff opinions and followed the stalling of the Clarity Act in the U.S. Senate.
Sources · 6 sources
- CO
CoinDesk@CoinDeskPost on X ·
NEW: CFTC staff updated its crypto FAQs to address customer funds invested in tokenized assets and the use of blockchain technology to satisfy recordkeeping requirements. Chairman Michael Selig says the changes are part of the agency’s efforts to provide “regulatory clarity for the crypto industry.”
Open source - UN
UnchainedArticle ·
CFTC Staff Let Futures Brokers Invest Customer Funds in Tokenized Assets, Keep Records Onchain Futures brokers and clearinghouses regulated by the Commodity Futures Trading Commission can invest customer money in tokenized versions of assets they are already allowed to buy, and registered firms can keep their required records on a blockchain , CFTC staff said in guidance released on Thursday. Three CFTC divisions, Market Participants, Market Oversight, and Clearing and Risk, added four new entries to a set of frequently asked questions on crypto assets that staff first published on March 20. “I’m pleased to see staff update these frequently asked questions consistent with the agency’s ongoing efforts to provide regulatory clarity for the crypto industry,” CFTC Chairman Michael Selig said in a statement. Tokenized Money Funds Qualify CFTC Regulation 1.25 limits what futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) may do with customer funds to a list of permitted investments. Under the new answer, a tokenized form of one of those investments counts if four conditions hold: the underlying asset is itself permitted, the token gives holders legal and economic rights “the same or functionally equivalent” to those of the traditional version, the holding meets the rule’s liquidity, concentration and maturity limits, and the tokens sit with an acceptable depository. For tokenized government money market funds , staff added that they would expect the firm to get a written acknowledgment letter from the fund’s custodian. Payment stablecoins still do not qualify. An earlier answer in the same document says FCMs may not invest customer funds in them, because the permitted-investment list was left unchanged. Records Can Live Onchain The other three new answers cover recordkeeping. Staff noted that Regulation 1.31, the CFTC’s general recordkeeping rule, and Regulation 45.2, which governs swap data records, are technology neutral. A firm can create and keep its required records onchain as long as it fully meets those rules, and staff said they would not object if it chose not to keep offchain copies. Firms that use a public, permissionless blockchain should have systems that let them produce records for CFTC inspection even if the network or its block explorer is unavailable, the FAQ said. The document said the recordkeeping rules had come up in responses to a June 16 CFTC request for information tied to Executive Order 14405, citing comments from dYdX Labs and two industry groups, the Blockchain Association and the Solana Policy Institute. The answers reflect staff views and are not binding rules. The update builds on December 2025 staff letters that opened the door to bitcoin, ether and payment stablecoins as margin collateral. Selig pledged on Sept. 16 to write crypto rules under the agency’s existing authority after the Clarity Act stalled in the Senate. Related Listen: How Tokenized Stocks Could Undercut Interactive Brokers’ 77% Profit Margin The post CFTC Staff Let Futures Brokers Invest Customer Funds in Tokenized Assets, Keep Records Onchain appeared first on Unchained .
Open source - CB
Coin Bureau@coinbureauPost on X ·
🇺🇸UPDATE: CFTC now lets US brokers invest customer funds in TOKENIZED assets and keep records on-chain. CFTC staff updated their crypto FAQs today, adding four new answers and revising one: Tokenized investments: Brokers and clearinghouses can invest customer funds in tokenized versions of approved investments, if the tokens carry the same legal rights. Tokenized government money market funds are included, with a custodian's written acknowledgment. Swap dealers can now use tokenized money market fund shares as margin for uncleared swaps. On-chain records: Brokers, exchanges and clearinghouses can use blockchains to meet recordkeeping rules. Firms can keep records only on-chain, with no off-chain copy required. Firms on public blockchains must still be able to produce records if the network goes down. What's unchanged: Crypto, including stablecoins, still can't be used as margin for uncleared swaps. The questions came from dYdX, the Blockchain Association and the Solana Policy Institute. It comes two days after Chairman Mike Selig said US markets must prepare for "mass tokenization."
Open source - LS
Laura Shin@laurashinPost on X ·
CFTC staff say futures brokers and clearinghouses can invest customer funds in tokenized versions of assets they are already allowed to hold, as long as the tokens carry the same or functionally equivalent rights as the originals, among other conditions. https://t.co/4qWfVFCxJR
Open source - CT
Coin TelegraphArticle ·
CFTC updates guidance on tokenized assets, blockchain records after failed vote Although the CFTC chair did not say the failed vote on the CLARITY Act was behind new rules for authorized crypto entities, he said the move was “to provide regulatory clarity.“
Open source - CO
CoindeskArticle ·
U.S. commodities firms can invest in tokenized assets, use blockchain records: CFTC The U.S derivatives regulator is grinding away at further guidance that welcomes tokenization and blockchain recordkeeping as regular industry elements.
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