CFTC updates tokenized-asset guidance after failed CLARITY Act vote

The CFTC updated guidance for registered crypto-related entities on tokenized assets and blockchain-based recordkeeping. The CFTC announced the update in a Thursday notice. The guidance was originally released in March. Authorized companies can invest customer funds in tokenized forms if the tokenized asset grants holders the same or functionally equivalent legal and economic rights as the traditional asset. The CFTC said it would not object to companies using blockchain-based recordkeeping under the updated guidance. CFTC Chair Michael Selig said the changes were intended to provide regulatory clarity for the crypto industry. The update came days after the US Senate failed to advance the Digital Asset Market Clarity Act. The bill was expected to clarify the CFTC's and SEC's roles in overseeing digital assets. Many expect Congress will not be able to pass crypto market structure legislation before 2027. The CFTC has submitted a crypto market regulation plan to the White House for review. SEC Chair Paul Atkins said before the vote that the SEC was ready, willing, and able to propose crypto rules without congressional action. The SEC proposed rules on certain investment contracts involving crypto assets in August.