What did U.S. banking regulators clarify regarding blockchain securities?

Regulators clarified that banks will not need to hold additional capital against losses when dealing with blockchain-based securities, stating their rules are 'technology neutral'.

How are tokenized securities treated under the new banking guidance?

Tokenized securities are treated the same as traditional securities; the technologies used do not generally impact their capital treatment.

Which U.S. banking agencies issued the guidance on blockchain securities?

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued the guidance.

Home / Business and Economy / Banks Capital Rules Now Tech-Neutral for Blockchain

Banks Capital Rules Now Tech-Neutral for Blockchain

6 Mar

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Summary

Banks won't need extra capital for blockchain-based securities.
Regulators confirm rules are 'technology neutral'.
Tokenized securities treated same as traditional ones.

Banks Capital Rules Now Tech-Neutral for Blockchain

U.S. banking regulators have issued new guidance clarifying that banks will not face additional capital requirements for dealing with blockchain-based securities. The Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency stated that their capital rules are "technology neutral," indicating no distinction will be made between tokenized and traditional securities.

This clarification is a response to the increasing interest from banks in representing ownership rights through tokenized securities. The agencies emphasized that the technologies used for issuing and transacting securities do not generally affect their capital treatment. This development aligns with a broader industry trend, where tokenized shares are seen as potentially revolutionizing stock markets by enabling 24/7 trading and instant settlement.

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