GoCheckMyCrypto.comBrazil's securities regulator sets up task force with 60-day deadline for tokenization proposal
Brazil's securities regulator (CVM) formed a working group to draft a framework for tokenized securities, with a primary proposal due within 60 days and a broader review spanning 120 days. The initiative addresses custody, ownership records, transaction reversibility, and liability, laying foundational guardrails for a tokenized asset market currently worth approximately $2.34 billion.
Brazil's securities regulator, the Comissão de Valores Mobiliários (CVM), formed a working group to draft an experimental framework for tokenized securities, with a primary proposal due to the CVM's board within 60 days and a broader review running for 120 days, with a possible 30-day extension.
According to CoinDesk, the framework will cover the registration, custody, trading, and settlement of securities using distributed ledger technology. Critically, it will address foundational questions that have delayed institutional tokenization in other markets: official ownership records, private key custody, transaction reversibility, and system liability. The working group brings together 14 CVM departments and may consult government agencies, market associations, self-regulatory bodies, and outside specialists.
The task force will review cybersecurity risks, international regulatory models, and results from earlier sandbox programs. 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. However, blockchains can combine functions that are normally split between exchanges, custodians, registrars, depositories, and settlement systems, creating novel regulatory and liability questions the framework will need to resolve.
Brazil's real-world asset market is currently valued at approximately 12 billion reais, or roughly $2.34 billion, according to CoinDesk and data from Brazilian tracking platform RWA Monitor. Debentures and commercial notes make up about $1.3 billion of that total. The CVM has already tested blockchain-based issuance and secondary trading through its regulatory sandbox, establishing some operational precedent.
The regulatory uncertainty around custody, reversibility, and liability has been cited as a barrier to institutional participation in tokenized asset markets globally. By explicitly addressing these questions in a 60-day window followed by a broader 120-day review, Brazil is attempting to create clarity where many other jurisdictions have left ambiguity. However, the framework's scope and depth remain unknown, and resolving these technical and legal questions in parallel may create iteration cycles that extend the actual timeline to market-ready rules.
The CVM has tasked an inter-departmental working group with drafting an experimental framework for tokenized securities within 60 days, with a complete review running 120 days, covering registration, custody, trading, and settlement on distributed ledger technology.
Watch for the 60-day proposal to the CVM board in late September and the substance of how the framework addresses custody and liability. If the full 120-day review produces clear rules, Brazil could establish a model for Latin American tokenization; if custody or reversibility questions remain unresolved, institutional adoption will remain limited.
And that's the way it is.
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