CFTC staff update crypto asset FAQs: tokenised investment of customer funds and onchain recordkeeping
On 24 September 2026, three divisions of the US Commodity Futures Trading Commission (CFTC) updated their frequently asked questions on crypto assets and blockchain technologies. The Market Participants Division (MPD), the Division of Market Oversight and the Division of Clearing and Risk added four questions (Q12 to Q15) and updated one (Q5). The FAQs were first published on 20 March 2026.
The new answers cover two areas. The first is whether futures commission merchants (FCMs) and derivatives clearing organisations (DCOs) may invest customer funds in tokenised forms of investments already permitted under Regulation 1.25. The second is whether regulated firms may keep their required records on a blockchain.
Status of the FAQs
The FAQs are staff views. Footnote 2 states that they "represent only the views of the Divisions" and "do not necessarily represent the views of the Commission". They may not be relied on to create "any new binding rules or regulations" or to amend existing ones, and the FAQs themselves do not provide any no-action position.
Customer funds in tokenised assets (Q12)
Regulation 1.25 governs how FCMs and DCOs may invest customer funds; paragraph (a) lists the permitted investments. Q12 answers that an FCM or DCO may invest customer funds in a tokenised form of a permitted investment if it can demonstrate four things, which Q12 says are required under Regulation 1.25 and CFTC Staff Letter 25-39:
the underlying asset is itself a permitted investment under Regulation 1.25(a);
the tokenised form grants the holder "legal and economic rights that are the same or functionally equivalent" to those of the asset in its traditional form;
the investment satisfies all applicable terms and conditions of Regulation 1.25, including liquidity, concentration limits, time-to-maturity and restrictions on instrument features;
the tokenised assets are held with an acceptable depository.
Footnote 20 states that staff expect all customer money, property and securities, including tokenised investments of customer funds, to be held with an acceptable permitted depository listed in Regulation 1.20(b) or, for government money market funds, with a custodian acceptable under Regulation 1.26(b). For tokenised forms of eligible government money market funds, the answer adds that staff would expect the FCM or DCO to obtain a written acknowledgment letter from the entity responsible for custody of the funds, in accordance with Regulation 1.26(b).
Recordkeeping on a blockchain (Q13 to Q15)
Q13 notes that the Commission made clear, in its 2017 amendments, that Regulation 1.31, the CFTC's general recordkeeping rule, is "technology neutral". Staff would not object to a records entity (any person required by the Commodity Exchange Act or CFTC regulations to keep regulatory records) using blockchain or distributed ledger technology to create and maintain onchain records,
provided it can "fully satisfy" the rule's requirements. For example, the entity must have systems and controls that ensure the authenticity and reliability of its electronic records. The same principle applies to any CFTC regulation that incorporates Regulation 1.31 by reference. Firms should also consider their risk management framework and existing policies and procedures, such as an FCM's risk management programme under Regulation 1.11.
Q14 says Regulation 45.2 is also technology neutral and applies the same position to swap data recordkeeping by swap execution facilities, designated contract markets, DCOs, swap dealers, major swap participants, and counterparties that are not swap dealers, major swap participants, or DCOs, again provided they can fully satisfy the rule's requirements.
Q15 addresses whether an offchain copy of records is required. Staff would not object "solely on the grounds" of an entity electing not to keep one. Where an entity uses a public and permissionless blockchain, as opposed to a private or permissioned one, it should establish systems and controls to retain and produce records under any circumstances.
That includes an emergency or other disruption to the network or its block explorer, and producing records for Commission inspection if either is inaccessible. Staff invite market participants to discuss whether a particular network counts as public and permissionless.
A footnote records that Regulations 1.31 and 45.2 were also identified in responses to the Commission's request for information of 16 June 2026, issued in connection with Executive Order 14405, citing comment letters from dYdX Labs, the Blockchain Association and the Solana Policy Institute.
Margin for uncleared swaps (Q5, updated)
The updated Q5 confirms that crypto assets, including payment stablecoins, are not eligible margin collateral for uncleared swaps under Regulation 23.156. Consistent with Staff Letter 25-39, a tokenised form of an eligible collateral asset may be exchanged, provided it satisfies applicable regulatory requirements and grants the same or functionally equivalent legal and economic rights. As an example, staff would not object to tokenised money market fund shares being used as initial or variation margin, provided the underlying fund meets Regulation 23.156(a)(1)(ix), the tokenised shares carry equivalent rights and all other applicable requirements are met.
Q5 refers to Commission amendments to Regulation 23.156(a)(1)(ix), adopted on 17 July 2026 and effective on 17 August 2026, for swap dealers and major swap participants not subject to prudential regulators' margin rules. The amendments removed the asset transfer restriction, which had disqualified shares of certain money market and similar funds from use as initial margin for uncleared swaps where the fund's assets were transferred through securities lending, repos and similar arrangements.
What has not changed
The earlier answers remain in place. FCMs may not invest customer funds in payment stablecoins, and may hold them in customer segregated accounts only as the FCM's residual interest (Q4). Under the no-action position in CFTC Staff Letter 26-05, MPD would not recommend enforcement action against an FCM that deposits proprietary payment stablecoins as residual interest in customer segregated accounts.
The FCM must take a capital charge under Regulation 1.17(c)(5), and MPD would not object to a charge of at least 2% of the stablecoins' market value (Q2). Other proprietary crypto assets, such as bitcoin and ether, may not be deposited as residual interest (Q3). For proprietary positions, MPD would not object to an FCM applying the minimum 20% capital charge in Regulation 1.17(c)(5)(ii) to inventory positions in bitcoin and ether, and a 2% charge to payment stablecoins, in line with SEC staff treatment of broker-dealers (Q6).
Timeline
December 2025: the Divisions issue CFTC Staff Letter 25-39 (tokenised collateral guidance) and MPD issues Staff Letter 25-40 (no-action position on crypto assets as margin collateral), later reissued with limited revisions as Staff Letter 26-05
20 March 2026: FAQs first published
24 September 2026: Q12 to Q15 added and Q5 updated
James Ross, Head of Advisory, denouement
Sources:
This note is not legal advice.
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