Franklin Templeton met with the U.S. Securities and Exchange Commission’s crypto task force on Oct. 9 to discuss how tokenized fund shares and tokenized U.S. stocks could be directly exchanged on blockchain-based trading platforms. The discussion focused on whether investors would be allowed to redeem those assets directly, whether liquidity providers could charge service fees, and how pricing rules under the Investment Company Act would apply in such arrangements. The two sides also examined whether tokenized ETFs and tokenized equities could be paired with compliant payment stablecoins or tokenized money market funds for trading. Another point on the agenda was whether related liquidity pools would need exemptions from investment company regulation. The meeting highlights ongoing regulatory discussions around how tokenized versions of traditional financial products might operate within existing U.S. securities rules.
Franklin Templeton met with the U.S. Securities and Exchange Commission’s crypto task force on Oct. 9 to discuss a direct exchange mechanism for tokenized fund shares and tokenized U.S. stocks on blockchain trading platforms.
The meeting covered whether investors could directly redeem those assets, whether liquidity providers would be allowed to charge service fees, and how pricing rules under the Investment Company Act would apply.
The two sides also discussed the feasibility of pairing tokenized ETFs and tokenized stocks with compliant payment stablecoins or tokenized money market funds, as well as whether related liquidity pools would need exemptions from investment company regulation.
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