The U.S. Commodity Futures Trading Commission on September 24 updated its crypto-asset FAQ to permit futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) to invest customer funds in tokenized versions of already-permitted assets — principally tokenized U.S. Treasury m...
"With developments like tokenization, on-chain finance, and 24/7 trading, the next decade will likely bring more change to financial markets than the previous several decades combined." — Michael Selig, Chairman, U.S. Commodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission on September 24 updated its crypto-asset FAQ to permit futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) to invest customer funds in tokenized versions of already-permitted assets — principally tokenized U.S. Treasury money market funds and government securities. The guidance was issued jointly by the Division of Market Participants, the Division of Market Oversight, and the Division of Clearing and Risk.
The ruling applies to a pool of customer funds that reached a record $442.7 billion in February 2026, according to Futures Industry Association data, up 26% year-over-year. Separately, the CFTC confirmed that blockchain-based records can satisfy federal recordkeeping obligations under Regulation 1.31 and swap data rules under Regulation 45.2, removing the requirement for redundant off-chain copies. Stablecoins remain explicitly excluded from the permitted-investment list.
The move landed nine days after the U.S. Senate voted 49-50 against advancing the Digital Asset Market Clarity Act on September 15, falling short of the 60-vote threshold. It followed by two days Chairman Selig's September 22 speech at the U.S. Treasury Market Conference at the Federal Reserve Bank of New York, where he called on markets to prepare for "mass tokenization." The sequence signals a shift toward agency-level rule-making in the absence of comprehensive legislation.
Three CFTC divisions added four new entries to a FAQ document originally published March 20, 2026. The additions build on Staff Letter 25-39 (tokenized collateral guidance, December 2025) and Staff Letter 26-05 (digital assets as margin collateral, early 2026).
Under the updated guidance, FCMs and DCOs may invest segregated customer funds in tokenized forms of assets already permitted under Commission Regulation 1.25. Four conditions must be met simultaneously:
For tokenized government money market funds specifically, the entity holding tokens on the FCM's behalf must provide a written acknowledgment letter confirming the assets are segregated client funds free of liens.
The guidance reflects staff views. It is not a binding rule, a distinction the CFTC noted in the FAQ document itself. However, it provides a compliance pathway for firms seeking to integrate tokenized assets into customer fund management without a formal rulemaking process.
The practical significance of the ruling is measured against the size of customer funds held at U.S. futures brokers.
| Metric | Value | Period | |--------|-------|--------| | Total FCM customer funds | $442.7 billion | February 2026 | | Month-on-month growth | +6% | January to February 2026 | | Year-on-year growth | +26% | February 2025 to February 2026 | | Number of FCMs holding customer funds | 52 firms | February 2026 | | Number of FCMs (prior year) | 49 firms | February 2025 |
JP Morgan Securities led with $74 billion in segregated futures funds, a 37% year-over-year increase, according to the FIA. UBS Securities held approximately $10.2 billion, up 40% annually. On the retail side, Robinhood Derivatives posted a 738% year-over-year surge to approximately $159 million. Coinbase Financial Markets was also listed among reporting FCMs, reflecting the entry of crypto-native firms into the regulated derivatives infrastructure.
The FIA attributed the record to "heightened volatility across global markets" stemming from geopolitical developments and shifting trade policy. FCMs manage these customer funds under strict segregation requirements — the same requirements the CFTC's September 24 guidance now applies to tokenized instruments.
Whether any meaningful share of this $443 billion migrates to tokenized instruments will depend on yield comparisons, custodial infrastructure maturity, and individual FCM risk assessments. The guidance creates the permission. Market adoption is a separate question.
The supply side is already substantial. As of September 24, 2026, the broader tokenized real-world asset market reached $46 billion, according to CryptoTimes, broken down as follows:
| Asset Category | Market Value | Share | |----------------|-------------|-------| | Tokenized funds | $34.7 billion | 75.5% | | Tokenized commodities | $7.7 billion | 16.8% | | Tokenized stocks | $3.5 billion | 7.7% |
Within the tokenized fund category, tokenized U.S. Treasuries specifically account for approximately $15.1 billion, with no single issuer holding more than 20% market share. BlackRock's BUIDL fund leads at $2.8 billion (approximately 18.5% of the Treasury category). Circle's USYC, built on the Hashnote infrastructure Circle acquired in 2025, sits near $2.9 billion. Franklin Templeton's BENJI holds approximately $700-750 million with a management fee of 0.15%, the lowest in the category.
Net yields across tokenized Treasury products range from 4% to 5.25% APY.
Ethereum hosts $22.2 billion in tokenized RWAs (48.4% of the total $46 billion market), followed by XRP Ledger at $2.5 billion (5.3%) and Avalanche at $1.8 billion (3.9%).
The CFTC guidance effectively creates a new demand channel for these products. An FCM that previously invested customer funds in conventional Treasury bills or government money market fund shares can now invest in tokenized equivalents — provided the four conditions above are met.
The less-discussed portion of the FAQ update may carry longer-term significance. Under Regulation 1.31 (general recordkeeping) and Regulation 45.2 (swap data records), the CFTC confirmed that regulated firms may create and maintain required records entirely on a blockchain.
Key provisions:
This removes a practical friction for firms operating on-chain. Previously, maintaining parallel off-chain records created compliance overhead that undermined the efficiency case for blockchain-based operations.
The FAQ update followed Chairman Selig's September 22 address at the U.S. Treasury Market Conference, hosted at the Federal Reserve Bank of New York. Selig framed tokenization as a structural shift rather than an incremental technology upgrade.
Selig presented data showing the scale change in markets the CFTC oversees:
| Metric | ~20 Years Ago | 2026 | |--------|--------------|------| | Daily Treasury futures turnover | ~$200 billion | ~$900 billion | | SOFR/short-term rate futures | ~$2 trillion | ~$5 trillion | | Short-term rate open interest | ~$10 trillion | $60+ trillion | | USD interest-rate swaps (daily) | ~$300 billion | $2+ trillion |
Against this backdrop, Selig stated that "high-quality tokenized collateral has the potential to make liquidity more dynamic and markets more resilient." He described a scenario where tokenized collateral moves in real time between clearinghouses, intermediaries, and end users — a departure from the current batch-based settlement model.
On 24/7 trading, Selig indicated the CFTC would take an asset-by-asset approach. Crypto and precious metals were identified as currently suitable for continuous trading. Agricultural products, energy, and certain financial instruments require further evaluation. The agency has solicited public comment on extending trading, clearing, and settlement windows for energy derivatives.
The CME Group and FICC have received exemptive orders permitting expanded cross-margining and portfolio-margin framework harmonization — another building block for the infrastructure Selig described.
The timing of both the speech and the FAQ update is inseparable from the legislative context. The Digital Asset Market Clarity Act failed its Senate procedural vote on September 15, 2026, with a 49-50 tally well short of the 60 votes needed to open debate.
The CFTC's response pattern:
| Date | Action | |------|--------| | September 15 | CLARITY Act fails Senate procedural vote, 49-50 | | September 16 | Chairman Selig pledges to develop crypto rules using existing agency authority | | September 17 | SEC publishes innovation exemption for tokenized equity trading | | September 22 | Selig delivers mass tokenization speech at NY Fed | | September 24 | CFTC staff issues updated tokenized-asset FAQ |
Both the CFTC and SEC are operating through administrative guidance, staff letters, and FAQ updates rather than formal rulemaking. This approach has the advantage of speed but carries inherent limitations: staff views can be reversed by subsequent commissions, and FAQ guidance does not carry the legal weight of codified regulation.
The approach reflects a deliberate regulatory strategy. Rather than waiting for Congress, financial regulators are establishing facts on the ground through incremental administrative action.
The FAQ update drew a clear line around stablecoins. Payment stablecoins — including USDC, USDT, and other dollar-pegged tokens — do not qualify as permitted investments for customer funds. The CFTC stated: "FCMs may not invest customer funds in them, because the permitted-investment list was left unchanged."
This distinction matters. While stablecoins were added as eligible margin collateral in earlier guidance (Staff Letter 25-39, expanded in February 2026 to include stablecoins from national trust banks), margin collateral and customer fund investment are separate regulatory categories with different risk frameworks.
Uncleared swaps maintain stricter rules. Only tokenized versions of already-eligible assets may serve as margin collateral in uncleared swap accounts — not cryptocurrencies or stablecoins directly.
The FAQ update incorporated feedback from a June 16, 2026, CFTC request for information, issued in connection with Executive Order 14405. Among the respondents:
The speed of the regulatory response — roughly three months from the request for information to updated guidance — is notable for a federal agency. It suggests both political will and existing institutional capacity to process blockchain-related policy questions.
The CFTC's September 24 FAQ update is an administrative action, not a legislative mandate. Staff views can be rescinded. But it lands at a moment when the regulatory direction is unmistakable: both the SEC and CFTC are building tokenization frameworks through the tools available to them, with or without Congress.
The practical question shifts to adoption. $442.7 billion in FCM customer funds now has a cleared pathway to tokenized instruments. Whether any meaningful allocation follows will depend on custody infrastructure, yield competitiveness, and the risk appetite of compliance departments at 52 registered FCMs. The supply of eligible tokenized products — $15.1 billion in tokenized Treasuries alone — is already in place.
The guidance does not create a new market. It connects two existing ones: the regulated derivatives custody system and the tokenized fixed-income market. Whether that connection generates measurable capital flows will be the next data point to watch.