Brazil’s CVM forms 120-day group to regulate securities tokenization

Brazil’s securities regulator, the Comissão de Valores Mobiliários, has created a 14-member working group to draft an experimental framework for tokenized securities, with rules expected to address registration, deposits, custody, trading and settlement using blockchain-based systems. The group must send its first proposal to the CVM board within 60 days of being formally installed, while a broader review will run for 120 days and can be extended by 30 days. The initiative, known as the Securities Tokenization Working Group, will also examine cybersecurity and operational risks, compare approaches used in Brazil and abroad, review sandbox results and consult regulators, market participants and other stakeholders. José Alexandre Vasco and Bruno Gomes will coordinate the effort, and CVM President Otto Lobo said tokenization represents a structural transformation of capital markets that requires innovative regulatory action. The move comes as Brazil expands both regulated digital asset markets and crypto enforcement. The CVM has estimated tokenized asset volumes in the country could exceed $740 million, while existing crowdfunding rules allow securities offerings of up to 15 million reais, or about $2.78 million, for a maximum of 180 days. Brazil’s central bank is developing Drex, and B3 has recently launched options on Bitcoin, Ethereum and Solana futures. Earlier this year, Law No. 15.358/2026 gave authorities power, subject to legal procedures, to freeze, block and confiscate cryptocurrencies and other digital assets linked to organized crime while strengthening cooperation with foreign agencies.