CFTC staff said tokens bought with customer funds must carry rights equivalent to those of the traditional asset. Existing investment limits, custody conditions and record-access duties still apply.
Staff at the US Commodity Futures Trading Commission have clarified when futures brokers and clearing organizations can invest customer funds in tokenized assets. The agency’s September 24 update covers assets already permitted under existing investment rules. Moving an asset onto a blockchain does not remove those limits.
An asset already permitted for customer-fund investments can also be held in tokenized form if it retains equivalent rights. The staff document explains how existing requirements apply; it does not expand the permitted investment list.
Tokenization does not expand the investment list
Question 12 of the updated FAQs addresses futures commission merchants, or FCMs, and derivatives clearing organizations, or DCOs. The underlying asset must first qualify as a permitted investment under Regulation 1.25. Its tokenized form must give the holder legal and economic rights that are the same as, or functionally equivalent to, those attached to the traditional asset.
Requirements covering liquidity, concentration, time to maturity and instrument features still apply. The tokenized assets also have to be held with an acceptable depository. For eligible tokenized government money market fund shares, staff expect a written acknowledgment from the entity responsible for custody of the fund’s assets.
A token’s presence on a particular network is therefore not enough. The token must retain the required rights and customer-asset protections. The update does not endorse a token brand or a public blockchain.
Stablecoin collateral and customer-fund investments are separate
The use of stablecoins as collateral in some derivatives transactions does not mean a broker can invest customer cash in those same assets. Question 4 states that payment stablecoins have not been added to the permitted customer-fund investment list. Accepting margin and investing funds remain distinct activities with different conditions.
Staff views, not a new rule. The FAQs express the views of the relevant CFTC divisions. They do not amend existing regulations or create new binding rules.
Onchain records still have to reach the regulator
The update also addresses blockchain-based transaction and account records. Staff would not object to onchain recordkeeping when firms meet the applicable authenticity, reliability and access requirements. The document describes the underlying approach in a short statement:
“Commission Regulation 1.31 is technology neutral.”
Choosing not to keep a separate offchain copy is not, by itself, grounds for an objection. But a firm using a public, permissionless network must still retain and produce records for examination if that network or its block explorer becomes unavailable. Having data on a blockchain does not transfer the firm’s responsibility to the network.
The staff clarification of crypto regulationdoes not exempt tokenized investments from existing limits on the use of customer funds.
