CFTC Clarifies Tokenized Asset Use for Futures Commission Merchants

The Commodity Futures Trading Commission (CFTC) has updated its crypto FAQ to clarify that futures commission merchants and derivatives clearing organizations may invest customer funds in eligible tokenized forms of assets permitted under Regulation 1.25.

This update applies only when the underlying asset complies with the rule and the tokenized version gives holders the same or functionally equivalent legal and economic rights.

The CFTC also confirmed that qualifying tokenized assets may be used as margin for uncleared swaps, extending the guidance beyond customer-fund investments.

New responses to recordkeeping questions (Q13-Q15) state that firms subject to the rules may create and retain regulatory records directly on a blockchain or distributed ledger without maintaining an additional off-chain copy solely because the records are on-chain.