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The Fed, OCC, FDIC Clarify Capital Treatment of Tokenized Securities

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The Fed, OCC, FDIC Clarify Capital Treatment of Tokenized Securities

The U.S. federal banking agencies have issued new guidance clarifying that tokenized securities should receive the same capital treatment as traditional securities.

The federal banking agencies of the United States have issued clarifications on the capital treatment of tokenization securities. The guidance states that eligible tokenized securities should receive the same capital treatment as traditional securities under existing capital rules.

On Thursday, March 5, the U.S. Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) published joint guidance on securities tokenization.

The guidance is in the form of answers to frequently asked questions about the tokenization of real-world assets (RWAs) that are classified as securities in The U.S. — such as stocks, U.S. treasuries, or exchange-traded funds (ETFs).

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The OCC’s guidance aims to provide clarity treatment for banks engaging in tokenization services, potentially encouraging wider adoption of tokenized assets.

“The capital rule is technology neutral. An eligible tokenized security should generally receive the same capital treatment as the non-tokenized form of security under the capital rule,” the OCC summarized in an X post yesterday evening.

One of the FAQs focused on whether the tokenized assets in question were issued on a public, permissionless blockchain network, or on a private, permissioned one. The banking agencies clarified that the distinction didn’t affect capital treatment, stating in its guidance:

“No, the capital rule does not provide a different treatment based on the use of
permissioned or permissionless blockchains.”

The integration of tokenized assets into existing financial frameworks represents a broader trend of financial innovation where blockchain and digital assets are increasingly seen as integral to the future of traditional finance. This regulatory clarity could serve as a catalyst for financial institutions to explore and expand tokenization services, thereby fostering innovation in capital markets.

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The OCC, which regulates and supervises national banks and federal savings associations, has received a flood of applications in the past year from crypto-linked firms looking to obtain banking licenses, with zerohash and Revolut among the most recent examples.

As The Defiant reported earlier this week, a new report from three major, global financial infrastructure providers argued that interoperability is essential for digital asset securities to reach their full potential.

This article was generated with the assistance of AI workflows.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class