Brazil's securities regulator, the CVM, has created a 14-member task force to draft an experimental regulatory framework for on-chain securities. The group has 60 days to deliver its proposal.
Why tokenization matters
Tokenization refers to representing traditional assets — stocks, bonds, real estate — as digital tokens on a blockchain. The practice is growing in Brazil, where several companies have launched tokenized investment products. The CVM's move signals a push to bring these activities under a clear set of rules.
Task force mandate
The task force will focus on how securities laws apply to tokens issued and traded on distributed ledgers. Its experimental framework is meant to test regulatory approaches before any permanent rules are set. The CVM has not disclosed the names of the 14 members or their backgrounds.
60-day timeline
The short deadline suggests the regulator wants a fast turnaround. Once the draft is complete, the CVM could open it for public comment or run a pilot program. The framework is described as experimental, meaning it may be adjusted based on real-world feedback before becoming binding.
Brazil is not alone in exploring tokenization. Regulators in the European Union, Singapore, and the United States are also working on rules for digital assets. But the CVM's task force is one of the first to set a specific deadline for an experimental securities framework.
The 60-day countdown began when the task force was formed. The CVM has not announced what happens after the draft is submitted.
