CFTC staff clear tokenised customer investments

Three CFTC divisions (Market Participants, Market Oversight, and Clearing and Risk) have updated their FAQs on registrant activity involving crypto assets and blockchain technology. The FAQs first appeared on 20 March 2026 to clarify Staff Letter 25-39 on tokenised collateral and Staff Letter 26-05, a no-action position on digital assets accepted as margin. Chairman Michael Selig welcomed the update as part of the agency's push for regulatory clarity.

Tokenised investments

The new twelfth question asks whether a futures commission merchant or a derivatives clearing organisation may invest customer funds in tokenised forms of investments already permitted under Regulation 1.25. Staff say yes, on four conditions. The underlying asset must itself be permitted; the token must carry the same or functionally equivalent legal and economic rights; the investment must meet every condition of Regulation 1.25, including liquidity, concentration limits and time to maturity; and the tokens must be held with an acceptable depository. For tokenised government money market funds, staff also expect a written acknowledgment letter from the custodian.

Three further questions cover recordkeeping. Because Regulations 1.31 and 45.2 are technology neutral, staff would not object to registrants keeping required records on-chain, provided every requirement is met, including systems and controls that ensure the records are authentic and reliable. Nor would staff object solely because an entity keeps no off-chain copy. The condition that comes with it is specific: an entity using a public, permissionless chain should be able to retain and produce its records even if the network or its block explorer is unavailable.

Not everything moved. The FAQs still say that customer funds cannot be invested in payment stablecoins, and crypto assets remain off the list of eligible margin for uncleared swaps, although a swap dealer may exchange a tokenised form of an eligible collateral asset.