Brazil CVM forms 60-day group for tokenized securities rules

Brazil's securities regulator has launched a formal initiative to create a regulatory framework for tokenized securities, setting an ambitious 60-day deadline for an initial proposal. The Comissão de Valores Mobiliários (CVM) announced the formation of a 14-department working group on July 17, tasking it with drafting an experimental framework covering the registration, custody, trading, and settlement of securities issued on distributed ledger technology.

CVM President Otto Lobo described the move as a response to a structural transformation of the capital market, stating that it demands an equally innovative regulatory approach. The working group will bring together technical expertise to assess opportunities, address challenges, and build the foundations for a modern regulatory environment aligned with the evolution of the Brazilian market.

The 60-day period begins upon the group's formal installation. Following that, a broader regulatory review will continue for 120 days, with an option for a 30-day extension. The group may consult with government agencies, industry associations, self-regulatory organizations, and external specialists during its work. Its mandate extends...