Brazil’s securities regulator sets up task force with 60-day deadline for tokenization proposal
Brazil's securities regulator, the CVM, has established a 14-department task force to develop a comprehensive regulatory framework for tokenized securities. The group is tasked with addressing critical infrastructure issues, such as custody, settlement, and liability, within a 60-day initial deadline.
Why it matters
As Brazil's real-world asset (RWA) market reaches $2.34 billion, this initiative signals a shift toward formalizing blockchain-based financial infrastructure, potentially serving as a global model for integrating decentralized ledger technology into traditional securities law.
The regulator said the framework will cover the registration, custody, trading and settlement of securities using distributed ledger technology.
The group must send its first proposal to the CVM’s board within 60 days of being formally installed, while a broader review will run for 120 days, with a possible 30-day extension.
The group brings together 14 CVM departments and may consult government agencies, market associations, self-regulatory bodies and outside specialists. It will also review cybersecurity risks, international regulatory models and results from earlier sandbox programs, the regulator said.
Brazil already applies securities law according to a token’s economic characteristics. The CVM’s 2022 guidance clarified that using blockchain does not change whether an asset qualifies as a security.
The new review will focus on what happens around the asset.
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