Franklin Templeton Seeks SEC Guidance on Tokenized Fund Regulations
- Franklin Templeton representatives met with the SEC’s Crypto Task Force to discuss the ETF and tokenized fund regulations.
- The firm seeks clarity on applying the SEC’s Innovation Exemption to its $1.8 trillion AUM funds, including tokenized money market funds.
- Discussions included potential relief from Section 22(d) and Rule 22c-1 for trading on a tokenized securities venue (TSV).
- The meeting also addressed whether liquidity pool interests could avoid classification as securities under the 1933 and 1934 Acts.
- Previous SEC actions include a no-action letter allowing Franklin Templeton-affiliated funds to invest in blockchain-controlled assets.
Franklin Templeton is seeking essential regulatory clarity regarding its tokenized funds’ participation in the TSV environment, particularly concerning compliance with the 1940 Act. The firm’s inquiries highlight ongoing efforts to navigate evolving cryptocurrency regulations.
The need for additional relief for tokenized ETFs and money market funds is crucial for Franklin Templeton’s operations in this space, as they aim to align with current regulatory frameworks established by the SEC’s Innovation Exemption.
