CFTC Clears Up Tokenization Rules for Customer Funds

The Commodity Futures Trading Commission (CFTC) has updated its crypto-asset FAQs to address tokenized customer-fund investments and blockchain-based recordkeeping.

The update, issued on September 24, clarifies that tokenization can be used for an investment already permitted for customer funds, rather than creating a new class of eligible assets.

According to the CFTC's announcement, the update applies to both futures commission merchants (FCMs) and derivatives clearing organizations, while setting out how firms may use distributed-ledger systems for records that regulations require them to retain.

The FAQs are staff views rather than binding rules, but their practical importance rests on how firms can meet underlying investment, record-preservation, and regulatory-access standards while adopting tokenized or on-chain systems.