U.S. commodities firms can invest in tokenized assets, use blockchain records: CFTC
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Summary
The U.S. Commodity Futures Trading Commission (CFTC), led by Chairman Mike Selig, issued updated guidance allowing commodities firms to invest in tokenized assets and use blockchain technology for recordkeeping. The agency clarified that tokenized assets are permissible if they grant holders legal and economic rights equivalent to the traditional assets. It also stated that blockchain-based records satisfy regulatory recordkeeping requirements, including the potential waiving of offchain record maintenance under certain conditions.
Why it matters
This development signals the CFTC’s continued endorsement of crypto and blockchain activities within the derivatives market, offering regulatory clarity to firms about investing in tokenized assets and using blockchain for official records. The source suggests this creates a more defined framework while the U.S. Senate has stalled on broader regulatory legislation for digital assets.
Key context
The guidance emerges amid the CFTC’s broader effort to clarify and update crypto-related policies, especially following the Senate’s failure to advance the Digital Asset Market Clarity Act that would have expanded CFTC oversight to crypto spot markets. The guidance aims to ensure that tokenized assets and blockchain records comply with existing commodity regulations.
Key numbers and entities
The key entity is the U.S. Commodity Futures Trading Commission (CFTC), chaired by Mike Selig. The Digital Asset Market Clarity Act is referenced as stalled legislation. No specific figures or tickers are mentioned.
What remains unclear
The guidance does not provide detailed criteria for how firms should verify the equivalence of rights granted by tokenized assets compared to traditional assets. It also leaves open the precise conditions under which offchain recordkeeping might be waived and how firms should handle disruptions in public blockchain networks.