CFTC Allows Tokenized Investment of Customer Funds and Blockchain Recordkeeping
The CFTC's Division of Market Participants, Division of Market Oversight, and Division of Clearing and Risk announced on the 24th that they have updated their FAQ for registrants on cryptocurrency and blockchain technology, adding new content that permits the investment of customer funds in tokenized forms of investments permitted under the rules and the use of blockchain for recordkeeping. In the newly added Question 12, holding permitted investments under Commission rules in tokenized form is conditioned on the underlying asset meeting the requirements of those rules and granting holders legal and economic rights equivalent to those of the traditional form. Questions 13 through 15 newly set out ways to satisfy recordkeeping obligations using blockchain technology. These FAQs were first published on March 20 and are intended to supplement CFTC Staff Letters 25-39 and 26-05, which provided guidance on accepting cryptocurrency as margin. Michael Selig, the division's chairman, expressed support for the staff's FAQ update as part of efforts to provide regulatory clarity for the industry.
Bitget raises estimate of stolen funds to about $387.5 million
Gracy Chen, CEO of cryptocurrency exchange Bitget, said on the 25th that the investigation into the unauthorized outflow had progressed, explaining that attackers compromised a critical backend system within the wallet infrastructure, then falsified transaction data and improperly triggered the transfer approval process to move funds out. Chen denied any leak of private keys, ruling out a more severe risk scenario, and confirmed that the breach had been contained, saying no further unauthorized transfers could occur. The intrusion route is still under investigation, and a detailed technical report will be published once it is confirmed. After the unauthorized outflow was discovered on the 24th, the loss was estimated at about $351.6 million as of the 25th, but on-chain analysis subsequently identified additional losses involving Gcash and Tron-related assets, and the figure was revised upward to about $387.5 million. The company plans to cover the full amount of the lost funds with a user protection fund exceeding $464 million, and said multiple technical teams are working on system repairs and security enhancements while also restoring withdrawal functions.
SEC Commissioner Hester Peirce Resigns
SEC Commissioner Hester Peirce, one of the cryptocurrency industry's most recognizable regulatory figures, has submitted her resignation. Peirce, widely known as "Crypto Mom" for her long-standing advocacy of digital assets, announced the move in an official statement. The resignation marks the departure of one of the agency's most prominent voices on cryptocurrency regulation. No successor or effective date was disclosed in the announcement.
