Commodity Futures Trading Commission Allows Tokenized Assets to Be Used for Customer Funds Compliance and Approves Blockchain Recordkeeping.

September 26: US Commodity Futures Trading Commission Clarifies Tokenized Asset Rules

The US Commodity Futures Trading Commission told registered derivatives entities that tokenized money market fund shares and other compliant customer fund investments may be treated as traditional asset holdings for customer funds compliance, according to an official announcement reported by PANews on September 26. Three departments of the Commission recently issued a joint update to its crypto asset frequently asked questions, giving firms a clearer basis for using digital representations in regulated customer fund processes.

What the Guidance Says

The update separates the form of an asset from its regulatory treatment. If a money market fund share is tokenized but remains a compliant customer fund investment, the guidance indicates it may be viewed in the same way as a traditional holding for customer funds purposes. The key point is that tokenization alone does not automatically exclude an asset from accepted categories, provided the underlying investment remains compliant.

Recordkeeping on Blockchain Networks

The Commission also said staff do not oppose entities using blockchain or other distributed ledger technology to keep records for federal recordkeeping requirements. This leaves room for firms to align record retention with digital asset operations while still meeting documentation obligations.

Why It Matters

For registered derivatives entities, the clarification reduces uncertainty around whether tokenized fund shares can sit inside regulated customer fund workflows. For the broader crypto market, the statement signals that regulators are engaging with distributed ledger recordkeeping rather than treating it as categorically incompatible with existing obligations.

Next Points to Watch

The practical impact will depend on how firms implement the guidance in custody, reporting, and audit systems. The update does not change the underlying requirement that customer fund investments remain compliant, and registered entities will still need to show that tokenized holdings and records meet existing obligations.