US Bank Regulators Clarify Capital Rules for Tokenized Securities

WASHINGTON – Federal banking regulators have issued guidance clarifying how banks should treat tokenized securities under existing capital rules. The agencies affirmed that eligible tokenized securities should generally receive the same capital treatment as their non-tokenized counterparts, reinforcing a technology-neutral approach to financial regulation.

What are Tokenized Securities?

A tokenized security is a digital representation of a traditional financial instrument, with ownership recorded using distributed ledger technology (DLT), often referred to as blockchain. Instead of traditional recordkeeping systems, ownership rights are recorded and transferred through DLT.

Key Findings from the Regulatory Guidance

The Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) jointly released answers to frequently asked questions (FAQs) on March 5, 2026, to address uncertainty surrounding capital requirements for blockchain-based securities. The core principle outlined in the guidance is that the capital rule is “technology neutral.”

• Technology Neutrality: The agencies emphasized that the regulatory framework is designed to remain neutral with respect to technology.
• No Impact from Issuance or Transaction Methods: The methods used to issue or transact in a security generally do not impact its capital treatment.
• Blockchain Type Irrelevant: The guidance does not differentiate between securities issued on permissioned blockchains and those operating on permissionless networks.

Implications for Banks

This clarification aims to reduce uncertainty for banks considering engaging with tokenized securities. Banks holding tokenized securities are still required to apply sound risk management practices and comply with all applicable laws and regulations.

Further Information

The complete FAQs document is available from the OCC: Capital Treatment of Tokenized Securities FAQs