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GMAC utility-token workstream proposes a six-element definition and fast-track review process
Summary
An informational presentation from the GMAC utility-token workstream proposed a six-element "utility token" definition, a 10-business-day certification review (with a 90-day stay and 30-day public comment period for complex cases), publication of self-certified tokens, and a recommendation to reactivate CFTC-SEC consultation mechanisms.
Christopher Perkins, president of Coin Fund, presented the GMAC digital-asset market subcommittee's utility-token workstream recommendations, an informational proposal intended to give market participants clarity about when a digital asset may be treated as a non-security commodity under current law.
The working group proposed a definition centered on "consumptive use": a digital asset must convey an immediately available, non-incidental consumptive use to the buyer (for example, a product, service, discount, special access, or certain governance or voting rights). The group suggested publishing the definition on the CFTC's digital asset information page and encouraged that, if the CFTC undertakes rulemaking related to utility tokens, it adopt the proposed common definition.
To increase predictability, the workstream recommended that the CFTC adopt a fast-track review: the agency would have 10 business days to review a submission before deeming it certified, unless it issues a stay for novel or complex issues; if stayed, the CFTC would have an additional 90 days and provide a 30-day public comment period. The group also proposed publishing a list of token self-certifications that satisfy the safe-harbor criteria and suggested formal consultation (including potential reactivation of a CFTC-SEC joint advisory committee) to address jurisdictional and coordination questions.
Perkins said the recommendations aim to deliver clarity under the existing U.S. legislative framework so market participants can pursue proactive compliance rather than learn consequences through post-hoc enforcement. He and colleagues described a non-exhaustive set of tokens that could meet the definition after self-certification, including native chain tokens such as ether and AVAX and various application-specific tokens.
A questioner asked whether commonplace loyalty or reward programs (for example, airline miles) could meet the definition; presenters said a tokenized airline reward could qualify if it is a digital asset that conveys the defined consumptive use and is represented on a ledger. The presentation was educational only; the GMAC did not vote on the utility-token recommendations at the meeting.
The workstream recommended further outreach and formalization of a public-facing safe-harbor process should the Commission pursue rulemaking; no Commission action was taken at this session.
