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

The U.S. Commodity Futures Trading Commission is continuing to hang the welcome sign for crypto and blockchain activity in the derivatives space, advising regulated firms that tokenized assets can be treated the same as the things being tokenized and blockchains are sufficient for recordkeeping.

The agency issued updated guidance on Thursday that instructed platforms overseen by the CFTC that customer funds can be invested in the tokenized forms of assets that already check the box as permissible. The regulator said the firms need to ensure that “the tokenized form of the asset grants the holder legal and economic rights that are the same or functionally equivalent to the rights received by holders of the asset in its traditional form” and that the assets are properly held.

The CFTC also added several points about the use of blockchains as official transaction records, saying the agency staff “would not object if a records entity utilized blockchain (or distributed ledger) technologies to create and maintain onchain records and satisfy its recordkeeping obligations.” It applies to any CFTC regulations involving recordkeeping and maintenance of regulatory data, the regulator said.

They may not even have to maintain offchain versions of the records if the firm is using a private network. If the blockchain is public and permissionless, the document said, the regulated business “should establish systems and controls that enable it to retain and produce such records under any circumstances, including in the event of an emergency or other disruption to the network.”

The CFTC has been hurrying to erect new policies, whether by stating an updated, crypto-friendly view on existing regulations or writing new rules. The process has been especially urgent after the U.S. Senate’s failure last week to advance the Digital Asset Market Clarity Act that would have set up a U.S. regulatory regime for the industry, including granting the CFTC powers over the crypto spot markets — which remains a regulatory hole for the sector.

“I’m pleased to see staff update these frequently asked questions consistent with the agency’s ongoing efforts to provide regulatory clarity for the crypto industry,” CFTC Chairman Mike Selig said in a statement.

Read More: CFTC sends crypto rules to White House to review as Congress stalls on Clarity Act