CFTC Cracks Down on Tokenized Assets with Blockchain-Friendly Rule Update
The US Commodity Futures Trading Commission (CFTC) has updated its guidance on tokenized assets and blockchain recordkeeping. The regulator released a Thursday notice stating that it had revised information under its frequently asked questions on registered crypto-related entities.
The original guidance, published in March, was updated to specify that authorized companies can invest customer funds in tokenized forms if the token grants holders rights equivalent to those received by traditional asset holders. The CFTC also clarified that it would not object to companies using blockchain-based recordkeeping under the new rules.
CFTC Chair Michael Selig stated that the changes are part of efforts 'to provide regulatory clarity for the crypto industry.' This move comes days after the US Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act, a bill aiming to clarify the roles of the CFTC and Securities and Exchange Commission in overseeing digital assets.