no-action letter

SEC

2026-08-13 09:41:22

SEC No-Action Letter Lets Franklin Templeton Use On-Chain Fund FOBXX for Cash and Collateral

The U.S. Securities and Exchange Commission's Division of Investment Management has issued a no-action letter to Franklin Templeton, permitting its registered funds to use the on-chain money market fund FOBXX, also known as BENJI, to manage cash and collateral via blockchain instead of following traditional custody rules. The letter, issued under Section 17(f) of the Investment Company Act of 1940 and Rule 17f-2, allows registered funds to hold FOBXX shares without satisfying certain physical vault requirements. This supports intraday trading, hourly net asset value calculations, and faster transaction processing. FOBXX primarily invests in U.S. government securities, aims to maintain a stable share price of $1, and has expanded to multiple blockchains. The development was reported by CoinDesk.

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SEC

2026-08-12 19:56:52

SEC Division Issues No-Action Letter to FTDA_US Over Franklin Templeton's FOBXX

The U.S. Securities and Exchange Commission's Division of Investment Management has issued a no-action letter to FTDA_US, according to a post on X from a reporter who covers cryptocurrency for Fox Business. The letter opens the door for FTDA_US's registered funds to manage their cash using Franklin Templeton's on-chain money market fund, FOBXX. The permission also extends to collateral related to securities lending. Under the exemption, Franklin Templeton is allowed to custody the fund shares and record ownership through the company's blockchain-integrated system. This means the firm does not have to comply with certain traditional rules that were drawn up for physical securities. Franklin Templeton said the arrangement can support intraday trading, hourly net asset value calculations, and faster processing of trades. The news was shared by the Fox Business reporter on X, citing the SEC's investment management division. The division's no-action letter is specific to FTDA_US and Franklin Templeton's FOBXX fund.

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Ondo Finance

2026-07-23 20:25:15

Ondo Finance Seeks SEC No-Action Letter for OGM Onchain Layer on Ethereum

Ondo Finance filed a no-action request with the SEC to add an Ethereum-based token layer for OGM products. Custodian BitGo manages the onchain records while existing securities frameworks stay intact.

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CFTC

2026-07-22 17:40:14

CFTC No-Action Letter Lets Non-Custodial Wallets Access Regulated Derivatives

CFTC's Market Participants Division issued a no-action letter to Phantom Technologies, allowing its wallet software to connect users to regulated derivatives without broker registration. A major policy shift for self-custody platforms.

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DTCC

2026-06-29 12:30:11

DTCC and JPMorgan Set Ethereum On-Chain Settlement Timeline, but Wall Street's Controversial 'Undo' Button Sparks Debate

The U.S. settlement backbone DTCC has received an SEC staff no-action letter to pilot a tokenization service that will represent DTC-held positions as tokens on approved blockchains, with DTC retaining the official record. The pilot, expected to launch in H2 2026, focuses on highly liquid assets like Russell 1000 stocks, ETFs, and Treasuries, and includes a controversial reversibility mechanism that allows DTCC to undo erroneous transfers, lost tokens, or malfeasance. Concurrently, JPMorgan has launched MONY, a tokenized money-market fund on Ethereum offering Treasury-backed yield for KYC'd institutional capital. Together, they outline a regulated path for tokenized securities and on-chain cash to interact within compliance guardrails. This article delves into the details of both initiatives, their asset scope, timeline, and the implications for institutional vs. retail adoption, while addressing the debate over the 'undo' button that challenges crypto's immutability narrative.

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