CFTC Says Tokenized Assets and Onchain Records Fit Existing Rules

The Commodity Futures Trading Commission just gave regulated firms a practical answer to two questions that have hung over tokenized finance: Can a permitted asset stay permitted when it is placed on a blockchain, and can the blockchain itself serve as the official record?

CFTC staff now says yes to both, as long as the technology does not strip away the legal rights, controls and safeguards that apply in the traditional system.

In a September 24 release, the CFTC said it updated its frequently asked questions for registered firms and market operators. The update addresses customer funds invested in tokenized versions of permitted assets and the use of distributed ledgers for regulatory recordkeeping.

The core standard is functional equivalence. A tokenized asset must give its holder legal and economic rights that are the same as, or functionally equivalent to, the rights attached to the traditional asset.

An eligible investment can remain eligible onchain only when the token preserves the underlying rights.

The update revises FAQs first issued in March 2026 and connects them to earlier CFTC guidance on tokenized collateral and digital assets used as margin. It gives registered firms a current operating standard without waiting for a new market-structure statute.

CFTC Chairman Michael S. Selig framed the update as part of a larger effort to modernize the agency’s rules for onchain markets.

The new frontier of finance isn't on the horizon. It's here.

As our markets evolve at warp speed, the @CFTC is upgrading its rules and regulations to prepare for the era of onchain systems, mass tokenization, 24/7 trading, and agentic finance. pic.twitter.com/om6XmfycIZ

— Mike Selig (@ChairmanSelig) September 23, 2026

The agency also said staff would not object when a regulated entity uses blockchain or distributed-ledger technology to create and maintain records required under CFTC rules.

CoinDesk reported that a firm using a private network may not need to keep a separate offchain copy simply because the original record lives on a blockchain. A public permissionless network carries a tougher operational burden.

The firm must have systems and controls that can retain and produce the records during an emergency or network disruption. The guidance applies broadly to CFTC recordkeeping obligations rather than creating a narrow exception for one pilot.

Regulated firms still need proper custody and must be able to produce complete records under any circumstances. The ledger can become the official record, but the firm remains responsible when the network is unavailable.

That distinction matters. The CFTC is treating blockchain as infrastructure with the same retrieval and control obligations attached.

Cointelegraph noted that the update came days after the Senate failed to advance the CLARITY Act. That bill was designed to draw clearer lines between the CFTC and Securities and Exchange Commission in digital-asset oversight.

With the legislation stalled, both agencies are signaling that they intend to use existing authority to answer immediate market questions. The SEC’s trading-and-markets director recently argued that building workable tokenized markets should have bipartisan support even after crypto policy became politically charged.

Jamie Selway (SEC Director, Division of Trading & Markets) on @BloombergTV

"Tokenization & crypto have been politicized recently. But it's not naturally a politicized function . . . Success of the country in terms of developing these markets should have good bipartisan support." pic.twitter.com/zeFtQbI6wb

— U.S. Securities and Exchange Commission (@SECGov) September 22, 2026

The update does not throw every tokenized asset into the permitted-investment bucket. Firms still have to prove that the underlying asset is eligible, that token holders receive equivalent rights and that custody and records remain reliable.

The guidance removes a basic source of uncertainty. A regulated company can use a token or onchain ledger when the rights and controls meet the existing standard.

That is the kind of clarification institutions have been waiting for. The larger market-structure fight remains open, while tokenized collateral and onchain operations now have a clearer path inside the rules that already exist.

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