The U.S. Commodity Futures Trading Commission updated its crypto asset FAQ on Sept. 24 through three of its divisions, setting out new staff guidance for futures commission merchants, or FCMs. Under the update, FCMs may invest customer funds in permitted tokenized assets, but only if those assets give holders the same legal and economic rights, or rights that are functionally equivalent, to those attached to traditional forms of the asset. The assets must also be held with a compliant custodian. The FAQ also says regulatory records may be maintained on a blockchain without keeping a separate off-chain copy. At the same time, payment stablecoins remain ineligible as an investment for customer funds. The CFTC said the guidance reflects staff views and does not carry the force of law.
The U.S. Commodity Futures Trading Commission, through three of its divisions, updated its crypto asset FAQ on Sept. 24, allowing futures commission merchants to invest customer funds in permitted tokenized assets.
The guidance sets conditions for that treatment. The tokenized asset must give its holder the same legal and economic rights as the traditional form, or rights that are functionally equivalent, and it must be held with a compliant custodian.
The update also states that regulatory records may be maintained on a blockchain, with no separate off-chain copy required.
Payment stablecoins, however, still cannot be used as an investment for customer funds.
The guidance represents staff views and does not have the force of law.
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