CFTC Clarifies How Tokenized Assets and Blockchain Records Fit Existing Rules

Overview

• CFTC staff updated FAQs on Thursday to explain that brokers, futures commission merchants and clearinghouses may hold tokenized versions of permitted investments only when the tokens give the same legal and economic rights as the traditional asset.
• The agency said distributed ledgers can satisfy recordkeeping rule Regulation 1.31 when records remain reliable, accessible, retained for required periods and producible for regulators, and it requires on public chains backup off‑chain controls to ensure availability during outages.
• The guidance reiterates that tokenization changes form not substance by leaving the list of permitted customer investments in Regulation 1.25 unchanged and by keeping existing custody and customer‑fund protection duties in force.
• CFTC staff emphasized the updates are advisory and do not change CFTC rules or offer enforcement protection, leaving firms to manage legal risk while agencies gather operational data through guidance, no‑action positions and pilots.
• The move follows the Senate’s failure to advance the CLARITY Act and coincides with SEC pilots for tokenized‑stock trading, signaling regulators will continue to clarify operational paths for on‑chain activity in the absence of new legislation.