The Commodity Futures Trading Commission’s Market Participants Division, Division of Market Oversight, and Division of Clearing and Risk released updates on September 24 to their frequently asked questions covering crypto asset and blockchain activities, the agency said in a press release on the CFTC website. The revisions clarify how registrants may invest customer funds in tokenized forms of permitted investments and how blockchain technology can be used to meet recordkeeping requirements.
What the updated FAQs clarify
The FAQs were first published on March 20, 2026, alongside the agency’s tokenized collateral guidance. The update addresses the investment of customer funds in tokenized forms of permitted investments under CFTC Regulation 1.25, the rule that governs how futures commission merchants and derivatives clearing organizations may invest segregated customer funds. Under that rule, customer money may be placed only in a limited list of permitted investments, and the revised guidance explains how tokenized representations of those investments are treated. Staff also explain when blockchain or distributed ledger technologies can satisfy a registrant’s recordkeeping obligations.
Clarity after the CLARITY Act stalled
The update continues a run of CFTC crypto guidance since the Senate rejected the CLARITY Act on September 15. “I’m pleased to see staff update these frequently asked questions consistent with the agency’s ongoing efforts to provide regulatory clarity for the crypto industry,” Chairman Michael S. Selig said. The move follows the agency’s September 17 submission of a proposed crypto market structure rule to the White House’s Office of Management and Budget for review, as the CFTC works to codify how its existing registration categories apply to crypto asset markets. The agency has separately submitted a crypto market structure proposal for White House review and issued no-action relief on margin collateral.
What it means for registrants
The FAQs are staff views rather than binding rules, but they give futures commission merchants and derivatives clearing organizations a clearer path to hold tokenized permitted investments and keep blockchain-based records. They build on Staff Letter 25-39, the tokenized collateral guidance, and Staff Letter 26-05, the no-action position on digital assets accepted as margin collateral. For market participants, the guidance reduces uncertainty about whether holding tokenized government securities or other permitted investments on behalf of customers complies with the rules, and whether records kept on a distributed ledger meet the Commission’s books-and-records expectations. The CFTC has also broadened no-action relief for passive crypto software providers, part of a wider effort to apply existing rules to digital assets without waiting for new legislation.
