CFTC Updates Tokenized Asset Guidance Amid Congressional Gridlock

The U.S. Commodity Futures Trading Commission (CFTC) has updated its guidance on tokenized assets, allowing registered entities to invest customer funds in them under specific conditions.

According to a Thursday notice, authorized companies may invest customer funds in tokenized forms of assets if the tokenized form gives holders legal and economic rights that are equivalent to or functionally similar to those attached to traditional assets.

The regulator also stated it will not object to blockchain-based recordkeeping for companies meeting certain requirements, aiming to provide regulatory clarity for the crypto industry.

This update comes as Congress stalls on broader market structure legislation, including the Digital Asset Market Clarity (CLARITY) Act, which aimed to clarify how the CFTC and Securities and Exchange Commission would divide oversight of digital assets.