CFTC says firms can invest in tokenized assets and use blockchain records

The CFTC issued updated guidance on Thursday. The guidance tells platforms overseen by the CFTC that they can invest customer funds in tokenized forms of assets that are already permissible. The CFTC requires tokenized assets to give holders legal and economic rights that are the same as or functionally equivalent to rights from traditional assets. The CFTC also requires firms to hold the assets properly. CFTC staff said they would not object if a records entity used blockchain or distributed ledger technology to create and maintain onchain records. The records could satisfy recordkeeping obligations under CFTC regulations involving regulatory data.