CFTC Clears Tokenized Customer Funds and Blockchain Records

The U.S. Commodity Futures Trading Commission (CFTC) has updated its guidance to allow registered derivatives firms to hold customer funds in tokenized forms of permitted assets and use blockchain-based records to meet certain recordkeeping requirements, marking another step toward integrating blockchain infrastructure into regulated financial markets.

The guidance, issued September 24, adds four questions to the agency’s crypto-related frequently asked questions and revises an existing entry. The changes provide greater clarity for futures commission merchants and derivatives clearing organizations seeking to use blockchain technology while remaining within existing regulatory requirements.

Tokenized assets gain regulatory clarity

Under the updated guidance, registered derivatives firms can invest customer funds in tokenized versions of assets that are already permitted under applicable rules. The tokenized instrument must provide holders with legal and economic rights that are identical or functionally equivalent to those associated with the underlying traditional asset.

The guidance gives regulated derivatives firms a clearer path to using tokenized versions of approved assets for customer funds, potentially bringing blockchain-based instruments closer to established financial-market structures.

The CFTC also indicated that it would not object to firms relying on blockchain records to satisfy books-and-records obligations. Firms using public blockchains, however, must maintain the ability to produce required records even if the network becomes temporarily unavailable. The guidance does not impose a mandatory requirement for separate off-chain backup copies.

CFTC Chairman Michael Selig described the update as part of the agency’s broader effort to provide practical regulatory clarity for crypto-related businesses. A footnote in the guidance said the changes followed issues raised by industry participants through a June request for information rather than being prompted by a single legislative development.

Regulators advance while Congress remains stalled

The CFTC announcement came nine days after the Senate failed to advance the Digital Asset Market Clarity Act, commonly known as the CLARITY Act. A September 15 procedural vote needed 60 votes to move toward debate but ended 49-50, with one senator not voting.

Selig subsequently indicated that the CFTC would continue developing regulations under its existing authority. The agency had submitted a proposed framework covering crypto transactions and markets to the White House for review on September 17. The proposal must still return to the commission for approval before it can be published for public comment.

The Securities and Exchange Commission has also continued pursuing crypto-related regulatory measures. In August, the SEC proposed rules addressing certain investment contracts involving crypto assets. On September 17, it separately provided temporary, conditional relief for venues trading tokenized U.S.-listed stocks through specified permissioned automated market makers and liquidity pools.

The CFTC’s Market Participants Division also issued a no-action position covering qualifying passive software providers. Under the position, eligible providers would generally not face staff enforcement recommendations for failing to register as introducing brokers when their software facilitates customer access to registered derivatives firms and markets.

Tokenization becomes part of broader market strategy

The latest FAQ update aligns with Selig’s wider focus on blockchain-based financial infrastructure. Speaking at the U.S. Treasury Market Conference hosted by the Federal Reserve Bank of New York on September 23, he highlighted the need for regulators to prepare for large-scale tokenization and adapt existing frameworks to developments involving blockchain and artificial intelligence.

Tokenized collateral could allow traditional assets to move more efficiently between market participants, clearinghouses and intermediaries, potentially reducing settlement delays and the amount of capital tied up during those processes.

The CFTC has also been examining continuous trading, clearing and settlement. In May, the agency issued guidance concerning 24/7 market activity and has sought public input on around-the-clock futures trading for energy commodities and perpetual contracts.

Tokenized equities and other real-world assets are increasingly being developed for trading outside conventional market hours. The New York Stock Exchange is also working on an on-chain platform intended to support continuous trading and faster settlement, subject to regulatory approval.

Stablecoins are another component of the CFTC’s evolving approach. In February, the agency expanded its eligible collateral framework to include certain payment stablecoins issued by national trust banks that satisfy specified conditions.

Legislative uncertainty keeps regulatory action in focus

The updated CFTC guidance provides immediate clarity for registered derivatives firms, while the broader regulatory picture remains dependent on both agency action and congressional legislation.

Former Ohio Congressman Tim Ryan, now an adviser to blockchain company Shyft, has indicated that lawmakers could still pursue the CLARITY Act during a later lame-duck session. He has identified ethics, consumer protection, illicit finance, and stablecoin rewards as among the issues requiring further negotiations.

Ryan has also distinguished regulatory action from legislation, noting that businesses making long-term investments generally seek rules that extend beyond changes in presidential administrations.

Taken together, the CFTC’s tokenization guidance, its broader crypto market framework, and recent SEC measures indicate that U.S. regulators are continuing to develop pathways for blockchain-based markets within existing financial oversight structures even as congressional negotiations remain unresolved.

The September 24 guidance therefore represents both a practical regulatory clarification and part of a larger effort to accommodate tokenized assets, blockchain recordkeeping, and continuous-market infrastructure within the U.S. derivatives system.