Fed clarifies capital rules for tokenized securities, says framework is ‘technology neutral’

The U.S. Federal Reserve issued a frequently asked questions document clarifying that banks must treat tokenized securities identically to their traditional, non-tokenized counterparts for capital regulatory purposes. The Fed explicitly stated that the underlying technology, including blockchain, does not alter this treatment, affirming that the capital rule is "technology neutral" and does not differentiate based on permissioned or permissionless blockchains. Furthermore, tokenized securities can qualify as financial collateral if they meet the same legal and risk-management standards as traditional securities. This guidance follows similar clarifications from the SEC, which previously stated that tokenized securities must comply with existing federal securities laws regarding registration and disclosure, as financial firms increasingly tokenize real-world assets.

(Source：The Block)