CFTC Updates Tokenization Rules, No Approval for BTC or ETH Investments
The US Commodity Futures Trading Commission (CFTC) has updated its FAQs to provide clarity on tokenization and blockchain-based infrastructure for regulated firms.
In a move that does not approve direct investment in Bitcoin or Ether, the CFTC clarified that traditional assets such as U.S. Treasuries, corporate bonds, or money-market fund shares can be represented as blockchain-based tokens.
The updated rules state that tokenized versions of permitted investments must meet requirements covering liquidity, concentration limits, maturity, other investment conditions, and custody.
Additionally, the CFTC has given greenlight to blockchain and distributed ledger technology for regulatory recordkeeping, allowing regulated entities to maintain on-chain records while meeting existing requirements for authenticity, reliability, retention, and accessibility.