On 24 September 2026, Commodity Futures Trading Commission (US CFTC) staff updated its crypto asset and blockchain FAQs. The update addresses investments of customer funds in tokenised assets and the use of blockchain for regulatory records. It also revises guidance on tokenised collateral for uncleared swaps. The update was issued jointly by three divisions i.e. Market Participants, Market Oversight, and Clearing and Risk. The FAQs were originally published on 20 March 2026.1
CFTC Chairman Michael S. Selig said:
“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”1
Investing Customer Funds in Tokenised Assets
New FAQ 12 addresses futures commission merchants (FCMs) and derivatives clearing organisations (DCOs) investing customer funds. Staff confirm that tokenised forms of permitted investments may be used where four conditions are demonstrated:
- Underlying eligibility: The underlying asset must qualify as a permitted investment under Regulation 1.25(a).
- Equivalent rights: Token holders must receive the same, or functionally equivalent, legal and economic rights as traditional holders.
- Investment safeguards: All applicable Regulation 1.25 conditions must be satisfied, including liquidity, concentration limits, maturity and instrument restrictions.
- Acceptable custody: The tokenised assets must be held with an acceptable depository.
For eligible tokenised government money market funds, staff also expect a written acknowledgement from the relevant custodian. This must accord with Regulation 1.26(b).2 Tokenisation therefore preserves the need to establish the underlying investment’s eligibility and the holder’s enforceable rights. Existing FAQ 4 continues to state that FCMs may not invest customer funds in payment stablecoins. Accepting assets as customer margin and investing customer funds remain distinct activities under the framework.3
Blockchain Records Under Regulations 1.31 and 45.2
New FAQs 13 and 14 explain that the relevant recordkeeping requirements are technology neutral. Under Regulation 1.31, entities may create and maintain regulatory records on a blockchain or distributed ledger. They must fully satisfy the regulation’s requirements, including controls ensuring electronic records’ authenticity and reliability.
The same approach applies to swap-data recordkeeping under Regulation 45.2. It covers relevant trading venues, clearing organisations, swap dealers, major swap participants and other covered counterparties. Staff also address regulations incorporating these provisions by reference. Entities should assess whether blockchain adoption requires changes to their risk management frameworks, policies or procedures.4
Offchain Copies and Record Availability During Outages
New FAQ 15 addresses whether entities using blockchain records must also maintain offchain copies. Staff would not object solely because an entity elects not to maintain an offchain version. However, firms using public, permissionless networks should establish controls supporting record retention and production under all circumstances. Those arrangements should address emergencies, network disruptions and the unavailability of an associated block explorer. Relevant records must remain producible and available for CFTC inspection despite such interruptions.5
Tokenised Money Market Funds as Uncleared Swap Collateral
Revised FAQ 5 clarifies the treatment of tokenised forms of eligible collateral for uncleared swaps. Staff identify tokenised money market fund shares as an example of potentially acceptable collateral. The underlying fund must satisfy Regulation 23.156(a)(1)(ix). Token holders must receive equivalent legal and economic rights, and all other applicable requirements must be met. Counterparty-specific restrictions continue to apply. These include cash-only requirements for required variation margin between swap entities. Eligibility must therefore be assessed for the relevant transaction and margin type.6
Legal Status of the Updated FAQs
The FAQs express the issuing divisions’ views and do not necessarily represent the Commission’s position. They create no binding rules, amend no existing regulations and provide no independent no-action relief. They supplement Staff Letter 25-39 on tokenised collateral and Staff Letter 26-05 on digital asset margin collateral. Firms relying on the latter remain subject to its conditions.7
Footnotes
- CFTC, Staff Releases Updates to FAQs Concerning Registrants and Registered Entity Activities Relating to Crypto Assets and Blockchain Technologies, Release No. 9303-26, 24 September 2026.
- CFTC, FAQs Concerning Registrant and Registered Entity Activities Relating to Crypto Assets and Blockchain Technologies, updated 24 September 2026 (“Updated FAQs”), Q12, p. 6 and footnotes 20–21.
- Updated FAQs, Q4, p. 3.
- Updated FAQs, Q13–Q14, pp. 7–8, including footnotes 22–30.
- Updated FAQs, Q15, p. 8 and footnotes 31–32.
- Updated FAQs, Q5, pp. 3–4; 17 CFR § 23.156, particularly paragraphs (a)(1)(ix) and (b)(1).
- Updated FAQs, p. 1, footnotes 2–3, and Q9–Q11, pp. 5–6; CFTC Staff Letter 25-39 and Staff Letter 26-05.
