The Federal Reserve clarifies capital rules for tokenized securities, stating the framework is "technologically neutral"

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ChainCatcher reports that the Federal Reserve has released a Q&A document clarifying that banks should treat tokenized securities according to existing capital rules, emphasizing that the current framework is “technologically neutral.”

The Federal Reserve stated that the technology used to issue or transfer securities (including blockchain technology) does not affect their regulatory capital treatment. Qualified tokenized securities should be treated the same as non-tokenized securities under the same rules. If tokenized securities meet the same legal and risk management requirements as traditional securities, they can be used as financial collateral. The Fed added that whether using permissioned or permissionless blockchains, capital rules do not make distinctions. This move follows the SEC’s clarification in January that tokenized securities must still comply with federal securities laws, representing another regulatory guideline for on-chain applications of traditional assets.

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