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RWA Regulation

CFTC Says Tokenized Assets Can Be Used in Customer Funds, Blockchain Records Allowed

The CFTC issued updated guidance on Thursday clarifying that tokenized versions of permitted traditional assets may be used for customer fund investments, provided they carry the same or functionally equivalent legal and economic rights and are properly custodied. The agency also said CFTC-regulated firms may use blockchain or other distributed ledgers to create and maintain records required under its rules. Chairman Mike Selig called the update part of ongoing efforts to give the crypto industry regulatory clarity.

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AI take

The significance is less about tokenization itself than about where the CFTC has chosen to draw the line: tokenized assets qualify only when their legal and economic rights match the underlying, which keeps the burden on custody and enforceability rather than on the technology. Allowing distributed ledgers for required recordkeeping is arguably the quieter shift, since it folds blockchain into existing compliance infrastructure instead of treating it as an exception. The open question is whether other regulators follow with equivalent recognition, or whether firms face a patchwork of standards for the same tokenized instruments.

Generated by AI for reference only.

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