The U.S. Commodity Futures Trading Commission (CFTC) issued updated guidance on Sept. 24 clarifying how registered entities may invest customer funds in tokenized assets and use blockchain technology for regulatory recordkeeping. The release came days after the U.S. Senate failed to advance the Digital Asset Market Clarity Act, commonly known as the CLARITY Act. Cointelegraph reported the timing of the regulatory change in an X post.

CFTC Clarifies Rules for Tokenized Assets

According to the agency, the updated frequently asked questions address two areas: investments of customer funds in tokenized forms of permitted investments, and the use of blockchain technology for regulatory recordkeeping.

Tokenized assets are blockchain-based representations of traditional instruments, and the significance of the update is operational: because customer funds held by registered entities may only go into permitted instruments under the CFTC's framework, the guidance sets out when a tokenized version of such an instrument can be treated the same as its traditional counterpart.

Under the guidance, registered entities may invest customer funds in tokenized forms of permitted assets when the tokenized version provides holders with legal and economic rights that are the same as, or functionally equivalent to, those associated with the traditional form of the asset.

In other words, tokenization by itself does not broaden what an entity may hold; the deciding factor is whether the tokenized instrument leaves holders in the same legal and economic position as the traditional asset.

The CFTC also said it would not object to registered entities using blockchain-based systems to satisfy applicable recordkeeping requirements.

CFTC Chairman Michael S. Selig said the changes were consistent with the agency's efforts “to provide regulatory clarity for the crypto industry.”

Guidance Builds on Earlier CFTC Framework

The FAQs were originally introduced on March 20, 2026. The initial guidance addressed activities involving crypto assets and blockchain technology and provided additional clarification concerning earlier CFTC staff positions on tokenized collateral and digital assets accepted as margin collateral.

The latest update does not amount to a new law and does not replace the underlying regulatory requirements. Instead, it offers additional staff guidance on how existing requirements apply to tokenized assets and blockchain-based records.

The clarification is particularly relevant to registered entities operating under the CFTC's regulatory framework, where requirements concerning custody, segregation, valuation, and recordkeeping remain in force.

Update Follows Failed Senate CLARITY Act Vote

The CFTC's announcement came shortly after the Senate rejected a cloture motion on H.R. 3633, the Digital Asset Market Clarity Act, on Sept. 15. The official Senate record shows the motion failed, with the vote recorded as 49-50. Cloture is the Senate procedure for ending debate so a measure can move toward a final vote, meaning the bill stalled before reaching that stage.

The CLARITY Act was designed to establish a regulatory framework for digital commodities and to clarify responsibilities between the CFTC and the Securities and Exchange Commission. The failed vote left the legislation without sufficient support to advance at that stage. In the bill's absence, the jurisdictional questions it was designed to settle remain unaddressed by legislation.

CFTC officials did not state that the Senate vote directly prompted the updated FAQs. According to Cointelegraph, Selig instead characterized the action as part of the agency's broader effort to provide regulatory clarity.

The immediate regulatory development therefore centers on how registered entities can use tokenized versions of permitted assets and blockchain-based recordkeeping under the CFTC's existing framework. How registered entities apply the functional-equivalence standard in practice, and whether the Senate takes up H.R. 3633 again, are the open questions left by the update.

Source: Hokanews