Franklin Templeton has received a no-action letter from the U.S. Securities and Exchange Commission for a blockchain fund, a regulatory step that could nudge the traditional finance industry closer to blockchain-based investment products. The letter, which signals the SEC staff won't recommend enforcement action, is being read as a cautious green light for a fund structure that has been slow to reach mainstream asset managers.
The no-action letter isn't a formal approval, but it removes a key regulatory hurdle. For Franklin Templeton, it means the company can proceed with its blockchain fund without the immediate threat of an SEC enforcement action. For the broader industry, it's a signal that the regulator is willing to engage with blockchain-based fund structures — at least in this case.
A green light, not a stamp of approval
A no-action letter is a statement
