CFTC Clears Path for Tokenized Assets in US Customer Funds

The Commodity Futures Trading Commission (CFTC) has clarified its stance on tokenized assets in customer funds. The agency updated its crypto asset FAQs to allow registered derivatives firms to use compliant tokenized forms of permitted investments when handling customer funds.

This expansion of blockchain-based financial products is seen as a significant development for the US markets, particularly for tokenized interests in money market funds and other assets already allowed under CFTC rules.

Eligible tokenized investments must meet the same applicable regulatory requirements as their traditional counterparts, including the rights associated with the underlying assets. The CFTC staff stated that they would not object to the use of blockchain and other distributed-ledger technologies to meet federal recordkeeping requirements.