CFTC Updates Tokenized Asset Guidance Amid Regulatory Gridlock
The US Commodity Futures Trading Commission (CFTC) has updated its guidance on tokenized assets, allowing authorized companies to invest customer funds in them. The update specifies that the token must grant the holder legal and economic rights equivalent to traditional forms of the asset.
The CFTC's decision is part of a broader effort to provide regulatory clarity for the crypto industry. In March, the agency released guidance on registered crypto-related entities, which has now been updated with this new information.
This change comes days after the US Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act, a bill that aimed to clarify the roles of the CFTC and Securities and Exchange Commission (SEC) in overseeing digital assets. With the failure of this bill, regulators are advancing their own policies through rulemaking.
The CFTC has already submitted a crypto market regulation plan for the White House to review. Meanwhile, SEC Chair Paul Atkins said before the CLARITY vote that the agency was 'ready, willing, and able' to propose rules on crypto in the absence of congressional action.