CFTC Clears Path for Regulated Firms to Use Blockchain for Recordkeeping

The Commodity Futures Trading Commission (CFTC) has issued updated guidance on digital assets, clarifying that regulated derivatives firms can invest customer funds in tokenized versions of permitted assets and use blockchain technology to satisfy recordkeeping requirements.

The update addresses two key questions for the crypto industry: whether tokenizing an otherwise permitted investment changes its regulatory treatment, and whether records maintained through distributed-ledger technology can satisfy existing CFTC requirements.

CFTC Chairman Michael Selig said the revisions were consistent with the agency's effort to provide greater regulatory clarity for the crypto industry.