Securitize Lands First Tokenization Deal With ARK Invest After SEC Exemption

The U.S. Commodity Futures Trading Commission (CFTC) announced on September 24 that it had updated its frequently asked questions (FAQ) guidance for registered firms on the use of crypto assets and blockchain technology. The update adds four new items and revises one item in the FAQ published on March 20. The new items state that futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) may use tokenized versions of already-permitted investments to manage customer funds, provided the tokens give holders legal and economic rights equivalent to those of the conventional assets. The update also permits firms to satisfy recordkeeping obligations with records kept on a blockchain, without requiring off-chain copies, though in the case of public chains it requires arrangements to submit records even during outages. CFTC Chairman Michael Selig commented, "I am pleased that we were able to deliver an update consistent with efforts to bring regulatory clarity to the crypto industry." The update came just after the Senate on September 15 rejected, by a vote of 49 to 50, a procedural motion to begin consideration of the crypto market structure bill known as the CLARITY Act. Selig said the following day, September 16, that he would develop rules under existing authority, and Securities and Exchange Commission (SEC) Chairman Paul Atkins also said in July that the agency would craft its own rules if the bill stalled.

Fathom Holdings and Neighborhood Intelligence have agreed to explore an alternative transaction that would replace their previously announced merger agreement. Under the proposed structure, Neighborhood would contribute its roughly 38.8% direct and indirect stake in tZERO, Medici-related fund assets, and its GrainChain investment to Fathom, with the contributed digital assets valued at no less than $130M. In exchange, NXH would receive newly issued Fathom shares and is expected to retain a controlling interest in Fathom after the transaction. The companies said the proposed structure would allow Fathom to pursue additional acquisitions while expanding its brokerage and title operations, and they also plan to explore blockchain and tokenization applications in real estate, including potential commercial real estate and single-family rental assets. The previously announced deal, under which Fathom shareholders would have received 0.2236 NXH shares per Fathom share, is expected to be terminated. FTHM shares rose 27% post-market.