US banking regulators clarify rules for tokenized securities

US banking regulators have clarified how tokenized securities should be treated on bank balance sheets.

In guidance released Thursday, the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency said securities issued or transferred using blockchain technology should receive the same regulatory capital treatment as traditional securities.

“The technologies used to issue and transact in a security do not generally impact its capital treatment,” the regulators wrote.

Under the guidance, tokenized securities representing traditional financial instruments will be assessed under the same capital framework as their non tokenized equivalents, meaning banks will not need to hold additional capital solely because a security is issued or transferred on a blockchain.

Banks are required to maintain capital buffers as protection against financial stress, holding liquid assets that help safeguard both the institution and its customers during periods of market disruption.

The agencies also clarified that derivatives referencing tokenized securities should receive the same capital treatment as derivatives tied to the traditional versions of those assets.

Separately, regulators said tokenized securities may qualify as financial collateral under existing capital rules if they meet the same legal and risk management requirements applied to conventional securities.

“An eligible tokenized security that satisfies the definition of financial collateral would qualify as financial collateral for purposes of the capital rule and may be recognized by the banking organization as a credit risk mitigant if all the other relevant requirements in the capital rule are met,” the agencies said.

Tokenization draws interest

The guidance arrives as interest in tokenizing traditional financial instruments continues to grow.

Regulators said the new clarification was prompted in part by rising interest among banks in representing ownership rights through tokenized securities.

Data from RWA.xyz estimates that tokenized public equities have reached roughly $1.1 billion in market value, forming part of a broader tokenized real-world asset market valued at about $26 billion and led by tokenized US Treasury products.

Regulatory clarity on the rise, but concerns remain

Historically, lawmakers have taken a cautious approach toward crypto-related activities, but policy signals from Washington have recently become more supportive of digital asset experimentation. 

Officials appointed during President Donald Trump’s second administration have increasingly encouraged regulatory frameworks that accommodate blockchain-based finance.

Still, some crypto policy debates in Washington remain unresolved.

Lawmakers are continuing to negotiate the Clarity Act, a bill intended to define how digital assets are regulated in the United States.

Talks around that legislation have recently stalled after banks rejected a compromise proposed by the White House concerning whether crypto firms should be allowed to offer yield-bearing rewards on stablecoin holdings.

The impasse has raised doubts about whether the bill will pass this year, with Trump accusing lenders of trying to undermine his administration’s crypto agenda as negotiations continue.