The U.S. Commodity Futures Trading Commission (CFTC) on Thursday updated its guidance on tokenized assets and the use of blockchain for recordkeeping. Authorized firms are now permitted to invest client funds in tokenized forms of assets, provided these offer the same legal and economic rights as traditional assets. The regulator also does not object to blockchain-based recordkeeping.

Changes Added to FAQ for Registered Crypto Firms

The update appears in the frequently asked questions section for registered crypto organizations. The guidance, first released in March, has been clarified: a token must grant the holder the same or functionally equivalent rights as the underlying asset in its traditional form. The CFTC also stated it "will not object" to the use of blockchain for maintaining records under the new rules. According to Chairman Michael Selig, the aim is to provide regulatory clarity for the industry.

Regulators Accelerate Rulemaking After CLARITY Act Fails

The move comes just days after the U.S. Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act, which was intended to clarify the roles of the CFTC and the Securities and Exchange Commission (SEC) in overseeing digital assets. Following the unsuccessful procedural vote, many expect Congress will not pass a framework law for the crypto market structure before 2027, and that regulators will proceed through their own rulemaking. The CFTC has already submitted its crypto market regulation plan to the White House for review.

SEC Signals Willingness to Propose Rules if Congress Does Not Act

In parallel, SEC Chairman Paul Atkins stated before the CLARITY vote that the agency is "ready" to propose rules for crypto assets if Congress does not act. In August, the regulator released a draft rule for public comment regarding "certain investment contracts related to crypto assets."