CFTC confirms tokenised MMFs and Treasuries eligible for FCM customer funds

The Commodity Futures Trading Commission (CFTC) has updated its frequently asked questions on tokenised collateral and digital asset margin, formally clarifying that futures brokers known as Futures Commission Merchants (FCMs) and clearing houses may invest customer funds in certain tokenised money market funds (MMFs) and Treasuries. The prior FAQ position already barred stablecoins from customer-fund investment, and that prohibition remains unchanged; the new language adds an affirmative path for tokenised versions of otherwise eligible assets.

Two conditions govern eligibility for these tokenised assets. First, the token must be held at a permitted depository, which may encompass the recently authorised Office of the Comptroller of the Currency (OCC) national trust companies. Second, for tokenised government MMFs specifically, the custodying entity must supply an acknowledgment letter confirming that the tokens are segregated client assets and free of any liens, mirroring the legal-equivalence principle the CFTC had previously established for tokenised instruments.

The update also captures a separate rule change that has come into effect since the prior FAQ: uncleared swap margin rules were amended to accept MMFs that employ repo and securities lending, a feature that had previously disqualified most funds. For uncleared swaps, the framework continues to allow only tokenised versions of otherwise eligible assets, with cryptocurrencies and stablecoins excluded. The FAQ now makes explicit what practitioners had generally assumed, that tokenised government MMFs fall within that permitted category.