U.S. commodities firms can invest in tokenized assets, use blockchain records: CFTC

The US Commodity Futures Trading Commission (CFTC) has revised its guidance on tokenized assets and blockchain-based recordkeeping after a failed Senate vote on the Digital Asset Market Clarity (CLARITY) Act. CFTC Chair Michael Selig stated that the changes were aimed at providing "regulatory clarity" for the crypto industry. The updated FAQ on the CFTC's website specifies that authorized companies can invest customer funds in tokenized forms if the tokenized asset grants holders equivalent legal and economic rights to those of traditional assets.

The regulator also indicated that it would not object to companies using blockchain technology for recordkeeping under the new rules. This move follows the US Senate's inability to pass the CLARITY Act, which would have clarified the roles of the CFTC and Securities and Exchange Commission (SEC) in overseeing digital assets. With the bill's defeat, analysts expect that Congress may not pass crypto market structure legislation before 2027, prompting regulators to advance their own policies through rulemaking.

The CFTC has submitted a crypto market regulation plan for the White House's review, and SEC Chair Paul Atkins had previously stated that the agency was prepared to propose rules on crypto investment contracts in the absence of congressional action.