The Federal Reserve clarified the capital rules for tokenized securities, stating that the framework is "technology-neutral."
PANews reported on March 6th that, according to The Block, the Federal Reserve released a Q&A document clarifying that banks should treat tokenized securities according to existing capital rules, emphasizing that the existing framework is "technology-neutral." The Fed stated that the technology used to issue or transfer securities (including blockchain technology) will not affect its regulatory capital treatment, and eligible tokenized securities should be treated under the same rules as non-tokenized securities. Tokenized securities can be used as financial collateral if they meet the same legal and risk management requirements as traditional securities. The Fed added that capital rules do not provide differential treatment regardless of whether permissioned or permissionless blockchains are used. This move follows the SEC's clarification in January that tokenized securities must still comply with federal securities laws, providing further guidance from regulators on the on-chain application of traditional assets.
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