CFTC Clarifies Guidance on Tokenized Assets and Blockchain Records

The US Commodity Futures Trading Commission (CFTC) has expanded its guidance on tokenized assets and blockchain-based recordkeeping for regulated derivatives firms. The update, issued on September 24, clarifies how firms can handle customer funds invested in tokenized permitted assets and use blockchain systems for records.

The guidance does not change existing regulations, but rather provides operational clarity for firms navigating the intersection of traditional finance and digital assets. Tokenized assets must still meet existing investment rules, including those outlined in Regulation 1.25, which limits eligible customer investments.

Tokenization can change how ownership or settlement is represented without changing whether the investment itself qualifies under existing rules. For example, a tokenized form of an eligible collateral instrument may be used if it provides legal and economic rights equivalent to its traditional version.

The update also addresses blockchain records, stating that they can satisfy Regulation 1.31 requirements if they remain reliable, accessible, and producible. This aligns with the CFTC's technology-neutral framework for storing, retaining, and producing regulated records.