CFTC Updates Tokenized Asset Guidance Amid Congressional Stalemate
The Commodity Futures Trading Commission (CFTC) has updated its guidance on tokenized assets and blockchain recordkeeping for registered crypto entities. This change came just days after the US Senate failed to advance the Digital Asset Market Clarity Act, a bill expected to outline roles for federal regulators in overseeing digital assets.
Under the new language, authorized companies can invest customer funds in tokenized forms of an asset as long as the tokenized version gives holders the same legal and economic rights as the traditional form of that asset. The CFTC also said it would not object to companies using blockchain-based recordkeeping under the updated rules.
CFTC Chair Michael Selig stated that the changes are meant to provide regulatory clarity for the crypto industry. This move follows a similar step taken by the Securities and Exchange Commission (SEC), which issued an order creating a temporary pathway for trading tokenized stocks.