CFTC Clears Tokenized Customer Funds and Blockchain Records

The U.S. Commodity Futures Trading Commission (CFTC) has updated its guidance to allow registered derivatives firms to hold customer funds in tokenized forms of permitted assets and use blockchain-based records for recordkeeping.

This move marks another step toward integrating blockchain infrastructure into regulated financial markets, according to CFTC Chairman Michael Selig.

The updated guidance adds four questions to the agency's frequently asked questions section and revises an existing entry. The changes provide greater clarity for futures commission merchants and derivatives clearing organizations seeking to use blockchain technology while remaining within existing regulatory requirements.

Under the new guidance, tokenized assets gain regulatory clarity as registered derivatives firms can invest customer funds in tokenized versions of assets that are already permitted under applicable rules.