US regulators: Tokenized securities subject to same capital rules as traditional assets

U.S. regulators have clarified that tokenized securities must be subject to the same capital requirements as their traditional counterparts, CoinDesk reported. In a document sent to banks, the U.S. Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) stated that a change in the technology used for a security does not alter its regulatory treatment. The agencies argued that just as the legal rights of a security owner are protected regardless of how the asset is traded, the underlying capital requirements must also be applied consistently. They added that while tokenized assets can be used as financial collateral, they will be subject to the same haircut levels as traditional securities. The regulators also noted that these capital rules will apply regardless of whether a permissioned blockchain is used.