Summary
Brazil's Securities and Exchange Commission (CVM) established a working group to propose rules for securities tokenization, with a 60-day deadline to deliver an experimental regulatory regime proposal and a 120-day deadline for a conclusive report with regulatory recommendations. The group, composed of 14 CVM employees and participants from other relevant parties, will conduct comparative studies, analyze regulatory sandbox results, and assess the impact of decentralized technologies on capital market structure.
The initiative addresses surging local demand: the CVM estimates tokenization volumes will surpass $740 million in 2025, powered by crowdfunding rules allowing issuances of up to $2.78 million with 180-day duration. CVM President Otto Lobo described tokenization as "a structural transformation of the capital market" requiring innovative regulatory action. The working group can be extended by an additional 30 days if needed.
Key Facts
- CVM working group: 14 employees + external participants; 120-day mandate (extendable by 30 days)
- First deliverable (60 days): proposal for experimental regulatory regime for securities tokenization
- Final deliverable (120 days): conclusive report with regulatory recommendations
- Scope: registration, deposit, custody, trading, and settlement of security tokens
- Activities: comparative studies, sandbox analysis, regulator/market debates, cybersecurity assessment
- Tokenization volume estimate: $740M+ in 2025
- Crowdfunding rules: issuances up to $2.78M with 180-day duration
- CVM President Lobo: "a structural transformation of the capital market"
- Follows CVM inquiries into tokenization company operations
- Part of broader Brazil crypto regulation push: VASP rules, CBDC guardrails, Bill 2946
Why It Matters
Brazil is emerging as one of the most proactive emerging-market regulators on tokenization. The CVM's structured approach — experimental regime first, then conclusive recommendations — mirrors the regulatory sandbox model that has worked well in other jurisdictions. With $740M+ in tokenization volume expected and roughly 90% of Brazil's crypto transaction volume denominated in dollar-pegged stablecoins, the country is building regulatory infrastructure for a market that already exists at significant scale.