Fed clarifies capital rules for tokenized securities, says framework is ‘technology neutral’
The U.S. Federal Reserve said banks should treat tokenized securities the same as traditional securities for capital purposes, emphasizing that existing rules are "technology neutral."
In a frequently asked questions document published Thursday, the Federal Reserve Board said the technology used to issue or transfer a security, including blockchain technology, does not affect its regulatory capital treatment.
"An eligible tokenized security should be treated in the same manner as the non-tokenized form of the security would be treated under the capital rule," the Fed wrote.
The Fed also said tokenized securities may qualify as financial collateral under existing rules if banks meet the same legal and risk-management requirements applied to traditional securities.
"The capital rule does not provide a different treatment based on the use of permissioned or permissionless blockchains," the Fed added.
The guidance comes as regulators increasingly address how existing financial laws apply to blockchain-based versions of traditional assets.
In January, the Securities and Exchange Commission said tokenized securities fall under federal securities laws and must comply with the same registration, disclosure, and investor-protection requirements as conventional securities.
The clarification comes as financial firms increasingly experiment with bringing traditional assets onto blockchain networks. Data from RWA.xyz estimates that tokenized public equities have reached about $1.1 billion in market value, within a broader $26 billion tokenized real-world asset market led by tokenized U.S. Treasury products.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VIPMiddle East Tensions Raise Rate Risks but May Create Buying Opportunities
1. The sharp escalation in Middle East tensions pushed Brent crude to multi-year highs of $105–$107 per barrel, reviving inflation expectations. The 10-year U.S. Treasury yield surged to 4.94%, its highest level since 2023, while the implied probability of a rate hike at the September 16 policy meeting to the 3.75%–4.00% range rose from 48.4% one month ago to 67.1%. 2. Rising oil prices and rate-hike expectations weighed on most risk assets, but historical data suggest that this is more likely to be a short-term adjustment than a reversal of the broader trend. Bitcoin fell 3.36% this week and the S&P 500 declined 1.64%, while gold slipped just 0.96%. Outside the energy sector, markets are largely repricing ahead of next week's expected rate decision. 3. PoolX has recently introduced a long-term holding bonus, significantly improving effective returns for users who maintain assets on the platform over time. The core participation rules remain unchanged; the update adds an additional boost to the effective locked amount for users with qualifying long-term holdings. In the example provided, a user locking 1000 ETH would see the estimated reward increase from 1666.67 USDT to 2500 USDT, or about 50%, while the reference APR rises from 4.93% to 7.40%. Assets to watch: BTC, ETH, SOL, Brent crude, WTI crude, gold, 10-year U.S. Treasuries, RAY, ZEC, LEN, CCL.
NASDAQ TRADE HALT <NFEGP.O> REASON NOT AVAILABLE AT 03:58 AM
NASDAQ TRADE HALT CONTINUES <NRSN.O> REASON NOT AVAILABLE AT 03:58 AM
NASDAQ TRADE HALT CONTINUES <EFTY.O> REASON NOT AVAILABLE AT 03:58 AM
Crypto prices
More
