The Brazil Securities Commission (CVM) held its second market meeting on securities tokenization in São Paulo, bringing together regulators, market participants and technology specialists to discuss proposed projects, test scenarios and regulatory options. Discussions addressed preparations for testing and the technological, operational and regulatory challenges of tokenizing securities. The meeting followed October’s establishment of the CVM Distributed Ledger Technology (DLT) Pilot Program, which provides for experimental activities across securities issuance, trading and settlement to assess technical, operational and legal viability. CVM Chair Otto Lobo emphasized that the regulator’s role is to present options and facilitate public debate, rather than determine the market’s direction or structure. José Alexandre Vasco, CVM superintendent for institutional development and modernization, described the Tokenization Working Group’s work as developing a broader regulatory regime with market participants, rather than drafting a single new rule. The group’s mandate includes conducting studies and tests, making technical recommendations and proposing regulatory measures for securities activities using DLT.
Brazil Securities Commission discusses tokenization tests and broader regulatory regime at second market meeting
The Brazil Securities Commission held its second market meeting to discuss proposed securities tokenization tests and regulatory options, following October’s establishment of its distributed ledger technology pilot. Chair Otto Lobo emphasized that CVM’s role is to present options rather than dictate market structure. Superintendent José Alexandre Vasco described the work as developing a broader regulatory regime, not a single rule.