CFTC Updates Tokenized Asset Guidance Amid CLARITY Act Stalemate
The US Commodity Futures Trading Commission (CFTC) has updated its guidance on tokenized assets and blockchain-based recordkeeping, allowing registered crypto companies to invest customer funds in tokenized forms under specified conditions. This change came just days after the US Senate failed to advance the Digital Asset Market Clarity Act, a bill meant to split oversight of digital assets between the CFTC and the Securities and Exchange Commission.
The update revises FAQs the agency first issued in March, clarifying that a tokenized asset qualifies if it grants the same legal and economic rights as its traditional form. However, this change does not directly apply to retail investors but rather to registered crypto-related entities.
The CFTC chair framed the change as a step to provide regulatory clarity, although he did not directly link the timing of the update to the failed CLARITY vote. The agency has already submitted a crypto market regulation plan for the White House to review and plans to advance its own policies through rulemaking.
The underlying turf fight between the CFTC and the SEC remains unresolved, with the question of regulatory boundary still unclear. The stalled bill has left many in Washington expecting that Congress will not pass comprehensive crypto market structure legislation before 2027.