US banking regulators have made clear how banks should handle tokenized securities under capital rules. This means that blockchain-based financial instruments will usually receive regulatory treatment as traditional securities.

The regulators are signaling that they view securities and traditional securities similarly. Banks will have to follow the rules for both types of securities. The goal is to ensure that banks are careful with these financial instruments.

In a joint press release issued on March 5, 2026, the Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), & the Office of the Comptroller of the Currency (OCC) released answers to frequently asked questions addressing the capital treatment of securities issued or represented using distributed ledger technology (DLT).

• Capital Rules Remain Technology Neutral
• Tokenized Securities Treated the Same as Traditional Securities
• Eligibility as Financial Collateral
• Permissioned vs Permissionless Blockchains

Capital Rules Remain Technology Neutral

The agencies say that the rules for banks in the United States are the same, regardless of the technology they use. So if a bank uses systems or new technologies like blockchain to handle securities, it does not affect how the government regulates the bank.

The government looks at the bank and its securities in the same way, no matter what method the bank uses to issue or record these securities, like stocks or bonds, whether that is with old computers or with blockchain. The bank and its securities are treated the same by the government.

The clarification comes as financial institutions increasingly explore tokenization, where ownership rights in securities are represented on distributed ledger networks. Earlier, EtherWorld reported that Donald Trump reaffirmed his support for digital assets at the World Economic Forum, stating that the United States must remain the global capital of crypto.

Tokenized Securities Treated the Same as Traditional Securities

Regulators said that eligible tokenized securities should receive the same treatment as non-tokenized securities. This means that when banks are figuring out how much capital to set aside, they will treat tokenized securities the same as regular securities based on the same thing.

Tokenized securities will be treated like regular securities for purposes of the rules governing how much capital banks must hold. This is because tokenized securities are essentially the same as non-tokenized securities; they are just in a different form. Regulators say tokenized securities should be treated the same as the securities they are based on.

Similarly, derivatives referencing tokenized securities will be treated in the same way as derivatives tied to the traditional versions of those securities. EtherWorld also covered how the US Senate advanced a major crypto market structure bill, marking a significant step toward establishing clearer regulatory frameworks for the industry.

Eligibility as Financial Collateral

The agencies clarified that tokenized securities can be used as collateral under current capital rules, provided they meet existing regulations. Banks must evaluate these instruments based on their legal status and value, not their method of creation.

In another development, EtherWorld reported that a US senator introduced a plan to create a special team to combat cryptocurrency scams and help investors. If the tokenized security is good enough to serve as collateral, it might be seen as a way to reduce credit risk, but it must comply with the same rules as other securities.

Permissioned vs Permissionless Blockchains

Another important thing regulators are looking at is how to treat securities for capital purposes. They say it does not matter whether these securities are on a blockchain accessible only to certain people or one accessible to anyone.

The rule for capital does not depend on the type of blockchain used. This is based on the idea that the rules should focus on the asset itself, not the technology it uses.

This new guidance shows that regulators are paying attention to tokenizing financial assets. Many banks, asset managers and others are getting more interested in this area.

This could help big institutions start using tokenized financial instruments. It also ensures that managing risk and living capital are handled in the same way in both traditional markets and those using blockchain.

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