Brazil’s CVM Launches Task Force to Draft Tokenized Securities Rules

The Brazilian Securities and Exchange Commission (CVM) has established a 14-department task force to create a comprehensive regulatory framework for tokenized securities. This initiative aims to address the unique infrastructure challenges posed by distributed ledger technology, which often consolidates traditional roles like custody, settlement, and registration into single blockchain-based systems. The task force is mandated to submit an initial draft within 60 days, followed by a 120-day public and expert review period. This development is significant as Brazil's tokenized asset market has reached approximately $2.34 billion, with corporate bonds and commercial paper accounting for $1.3 billion of that valuation. By focusing on the underlying infrastructure rather than the assets themselves, the CVM seeks to resolve critical questions regarding ownership records, private key management, and systemic liability. The framework will also incorporate findings from previous blockchain-based experiments conducted within the CVM’s regulatory sandbox. This move signals a proactive approach by a major emerging market regulator to formalize the integration of DLT into the national financial system.