Brazil’s CVM Launches 60‑Day Task Force to Shape Tokenized Securities Framework

Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), announced the formation of a working group tasked with drafting an experimental framework for tokenized securities.

The regulator said the framework will address registration, custody, trading, and settlement of securities using distributed ledger technology.

The group must submit its initial proposal to the CVM’s board within 60 days of its formal establishment, while a broader review will continue for 120 days, with a possible 30‑day extension.

The team comprises 14 CVM departments and may seek input from government agencies, market associations, self‑regulatory bodies, and external specialists. It will also examine cybersecurity risks, international regulatory models, and findings from prior sandbox programs.

Brazil already applies securities law based on a token’s economic characteristics. The CVM’s 2022 guidance clarified that employing blockchain does not alter whether an asset qualifies as a security.

The new review will concentrate on the surrounding infrastructure.

Blockchains can merge functions traditionally handled by exchanges, custodians, registrars, depositaries, and settlement systems. This raises questions about who maintains the official ownership record, how private keys are secured, when transactions can be reversed, and who bears liability if systems fail.

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