U.S. Regulators Clarify Capital Rules for Tokenized Securities

U.S. banking regulators have issued joint guidance indicating that banks will not be required to hold additional capital for blockchain-based or tokenized securities. According to NS3.AI, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) stated that existing capital rules are technology-neutral, meaning tokenized securities will be treated the same as traditional securities. This clarification was released in response to increasing interest from banks in using tokenization to represent ownership rights in securities. The guidance is timely, as there is growing activity in tokenized shares and tokenized U.S. Treasury products from both crypto firms and major asset managers.