CFTC Clarifies Regulatory Framework for Tokenization and Blockchain

The U.S. Commodity Futures Trading Commission (CFTC) has released updated FAQs to clarify regulatory requirements for tokenization and blockchain-based infrastructure.

The CFTC's Market Participants Division, Division of Market Oversight, and Division of Clearing and Risk have addressed two specific issues: whether customer funds can be invested in tokenized versions of permitted investments, and whether regulated firms can use blockchain technology to meet recordkeeping obligations.

CFTC Chairman Michael S. Selig stated that the updated FAQs provide 'regulatory clarity for the crypto industry.'

The CFTC clarified that assets already permitted under its rules can be held in tokenized form, as long as the token gives holders the same legal and economic rights as the traditional asset.