Brazil's securities regulator, the CVM, has created a Tokenization Working Group to study and propose rules for securities on distributed ledger technology. The group was established via Portaria CVM/PTE No. 177, dated July 15 and published July 17, and has 120 days to complete its work — but must deliver a draft experimental framework within the first 60. The move signals a fast regulatory push in Latin America's largest economy, with direct implications for tokenization platforms, brokerages, and custody providers.
A 60-day sprint to a draft framework
The working group's tight timeline is the headline. Within 60 days of installation, it must submit a proposal for an experimental tokenization framework to the CVM board. That's a quick pivot from theory to draft rules. The group includes representatives from 14 CVM components, coordinated by José Alexandre Cavalcanti Vasco and Bruno de Freitas Gomes. The 120-day term can be extended by 30 days if needed, but the 60-day deadline is fixed.
What the working group will cover
The scope covers issuance, trading, custody, and settlement of securities on blockchains. The experimental framework is expected to define asset types — likely plain vanilla securities first — participant eligibility, limits on issuance and investors, custody requirements, and conditions for trading venues. That's a broad remit, and it means platforms that tokenize real estate, debt, or equity will need to watch closely. Brokerages and custodians that handle digital assets are also in scope.
Brazil already has a vibrant crypto and tokenization scene. The CVM has been cautious but not hostile. This working group formalizes that the regulator wants rules, not a ban. The 60-day deadline suggests urgency — possibly to get ahead of market growth or to align with other jurisdictions. For firms operating in Brazil, the experimental framework will be the first concrete signal of what's allowed and what's not. It could also influence how other Latin American regulators approach tokenization.
Next steps
The working group's installation date hasn't been announced yet, but the clock starts ticking once it's formed. The experimental framework proposal is due within 60 days of that installation. After the CVM board reviews it, the group has another 60 days to finalize its broader recommendations. The term can be extended by 30 days, but the regulator seems intent on moving fast. For now, the industry waits to see what the draft rules look like — and how quickly they'll become binding.
