CFTC updates guidance on token chemical assets and blockchain records after a vote failed to pass

The Commodity Futures Trading Commission (CFTC) issued an announcement on Thursday updating its FAQ guideline for registered crypto-related entities, explicitly allowing licensees to invest customer funds in the digital form of token assets if certain conditions are met and not objecting to businesses adopting blockchain technology for bookkeeping. This is a significant adjustment by the agency following the first release of relevant guidance in March this year which was seen as signaling further relaxation of cryptocurrency regulation.

What the new guidelines say: token forms must be equal to traditional rights

According to the announcement, this update is based on March guidance and provides a clearer answer as to whether crypto token digital assets can replace traditional forms of tokens. The CFTC emphasizes that authorized companies may invest in cryptocurrencies provided they grant legal and economic rights to their holders that are identical or functionally equivalent to those obtained under conventional formats.

In other words, token does not just move assets to the chain. Institutions must ensure that on-chain holders are no less valuable than investors in traditional channels for core rights such as redemption, profit sharing and bankruptcy protection. The CFTC also said that under the new rules, regulators will not oppose brick-and-mortar companies using a record keeping method based on blockchain , which leaves room for financial institutions to use distributed ledger technology instead of existing accounting systems.

CFTC Chairman Michael Selig said the change was part of efforts to provide regulatory clarity for the crypto industry.

Legislation stalled, regulators move on their own

It is worth noting that just a few days ago, the Senate failed to advance its procedural vote on the digital asset Market Clarity Act (CLARITY Act), which was intended to clarify the division of responsibilities between the CFTC and the Securities and Exchange Commission (SEC) in regulating digital asset , one of the most important pieces of crypto legislation at the congressional level.

Following the vote's defeat, it was widely expected that Congress would struggle to pass legislation related to crypto market structure until 2027, with a regulatory vacuum being filled by regulators making their own rules. It has been disclosed that the CFTC had submitted an agenda for cryptocurrency regulation to the White House awaiting review.

SEC was equally positive. Paul Atkins, the chairman of SEC , said before voting on CLARITY that if Congress does not act, it is ready, willing and able to propose crypto-related rules. The agency already proposed draft regulations in August this year for certain investment contracts involving crypto asset .

What it means for the industry

In the short term, the most immediate impact is that crypto-related entities already registered in United States have received operational level confirmation: token chemical assets and on-chain ledgers are no longer gray areas but rather clearly conditioned compliance pathways.

In the medium to long term, against a backdrop of legislative stagnation, the CFTC and SEC are shaping their respective crypto regulatory frameworks in a manner similar to how they have done with United States . This means that the rules facing the industry over the next year or two will likely come from more case-by-case determinations by regulators rather than a single federal law. Compliance standards may still vary between agencies.

The follow-up to the White House's review of CFTC regulatory submissions is worthy of attention, as well as the pace at which draft SEC encryption rules are being rolled out after a formal request for comment.