TLDR Brazil’s CVM created a 14-department task force to develop rules for tokenized securities. The group must submit its first tokenization proposal within 60 days of formal installation. A
Brazil’s securities regulator formed a task force to draft a tokenization framework within 60 days. The Comissão de Valores Mobiliários said it will cover registration, custody, trading, and settlement. Brazil expects the proposal to guide distributed-ledger securities oversight.
The group includes 14 CVM departments. It must submit a proposal after formal installation. Brazil will conduct a 120-day review, extendable by 30 days.
The group may consult agencies, associations, self-regulatory bodies, and specialists. It will assess cybersecurity threats and foreign regulatory approaches. Brazil will consider earlier regulatory sandbox evidence.
The CVM previously tested blockchain issuance and secondary trading. Those trials examined operations, controls, and practical risks. Their findings will support Brazil’s experimental framework.
Distributed ledgers can combine functions usually handled by separate institutions. Exchanges, custodians, registrars, depositories, and settlement systems may share one platform. Brazil therefore wants clearer responsibilities for operators managing several functions.
The review will examine who maintains the official ownership record. It will assess private-key custody and rules for reversing transactions. Brazil will also determine liability when platforms experience failures.
Existing securities law classifies tokens by their economic characteristics. CVM guidance from 2022 confirmed that blockchain does not change that classification. The latest review instead targets services surrounding tokenized securities.
Brazil’s real-world asset market totals about 12 billion reais, according to RWA Monitor. That equals roughly $2.34 billion under the platform’s estimate. Debentures and commercial notes represent about $1.3 billion.
Market growth has increased regulatory attention on infrastructure and accountability. Distributed systems can alter ownership recording and transaction processing. Brazil seeks rules that assign duties across connected activities.
The task force will prepare its proposal for the CVM board. Consultations and technical analysis will continue during the broader review. Brazil expects the 60-day filing to advance its tokenization framework.
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