CFTC Clarifies Guidance on Tokenized Assets and Blockchain Records
The Commodity Futures Trading Commission (CFTC) has updated its guidance for tokenized assets and blockchain records. This move aims to provide clarity on the regulatory framework for technology use in U.S. derivatives markets.
The updated staff FAQs cover tokenized versions of existing assets, such as U.S. Treasury securities, corporate bonds, money-market-fund shares, and equities. These tokenized forms must offer the same legal and economic rights as their traditional counterparts or be functionally equivalent.
The guidance emphasizes requirements for legal enforceability, custody, segregation, control, valuation, haircuts, and operational risk. This applies to activities overseen by the CFTC and builds on previous FAQs issued in March 20.
CFTC Chairman Michael S. Selig stated, '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.'