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Tokenization under scrutiny by the SEC in the US and the CVM in Brazil!

One entity that is becoming increasingly important in the lives of those who want to buy business tokens is the regulatory agency. In the United States, which serves as a parameter due to the complexity of the markets and the level of structuring of the financial system, this body is the SEC.

In Brazil, the corresponding entity in the attributions is the CVM – well known to brokerage houses and investors in the traditional capital market.

With the exponential growth and popularization of business tokens in the daily life of companies and individuals, it will be incumbent upon these agencies to provide more security for investors with regard to the smoothness of the tokenization market players‘ actions.

They are working hard to understand the dynamics of this disruptive way of doing business and chart the most solid path not only for those investing in tokens, but also for the companies operating in the sector.

BLOCKBR, a web 3.0 native company, will talk about the role of the SEC and CVM in tokenization and how they will contribute to the strengthening of the markets!


The SEC is the US Securities And Exchange Commission, an independent agency (not subordinate to any government body) that aims to protect and regulate the US financial market.

Among its duties are:

  • Define rules and laws about securities;
  • Monitor and define the scope of the companies operating in the market – banks, brokerage houses, credit companies, and, more recently, exchangescryptoactive brokerage houses – and tokenization companies.
  • Protect investors against fraudulent practices;
  • Promote transparency of company information;
  • Investigate illicit activities;
  • Impose fines and order the return of irregularly sourced profits.

It is important to emphasize that the SEC has no criminal character, only investigative. If financial wrongdoing is suspected, she will refer the case to the Public Prosecutor’s Office.


A good example of the SEC ‘s importance in regulating the crypto-active market is the decision to investigate whether the APE coin(apecoin) could be classified as a security token and thus be subject to specific regulation by the SEC.

This classification implies meeting specific registration requirements and complying with the paperwork to trade the asset as a security token.

It is a one-off decision, among many others in such a dynamic industry, where new digital currencies and tokens emerge daily and investors need to be guided on how to deal with new crypto-active companiescrypto brokers and tokenizers.

In 2020, SEC Chairman Jay Clayton demonstrated the agency’s bias on the market:

“In the past, there were stock certificates, and today there are digital items that represent shares. It may be the case that they all become tokenized.”


A major challenge of the SEC in the cryptomarket, which is still very new and was born in the disruption to be a complete transformation in the means of payment (with digital currencies) and the way of doing business(tokens), is to prevent and/or combat major disasters.

With cryptocurrencies changing profile to be volatile and speculative ways of investing and gains as impressive as losses, it is not uncommon for companies to emerge that either want to practice fraud or simply don’t know how to run a crypto business.

The FTX case, which blew up in November 2022, is a well-finished example of how wrong management decisions can cause billions in losses and bring the entire system into disrepute.

Ultimately, the SEC’s biggest task is to bring to the cryptoeconomy the structuring achieved in traditional capital markets, making it a healthy financial ecosystem for all.

Digital Assets in 2022: A look at the year of investments!


The Securities and Exchange Commission is the counterpart in Brazil to the SEC, including its administrative autonomy, which guarantees the independence to deal with such a sensitive matter – regulating the Brazilian financial market.

It is an autarchy well known to those who invest in the capital markets and has several attributions, among them:

  • Oversee and stimulate the system and the relationships within it;
  • Define norms that ensure the correct operation of the market;
  • Create anti-fraud policies and other financial crimes;
  • Promote transparency in financial operations.

The CVM therefore has a key role in regulating cryptoactive assets in Brazil.



An important step toward regulating the token market is CVM’s Guidance Opinion 40 in October 2022, which brings a series of rules for the industry. Basically, the opinion:

  • Provides guidance on the limits of CVM’s actions;
  • Indicates the digital assets that can be considered as securities;
  • It defines the taxonomy – categories into which each token operation can fall;

One aspect that causes confusion is the responsibility delegated to the tokenizing agent to define which category of token is to be generated.

On the other hand, if the issuer of the token defines that it does not have a security character and the CVM understands the opposite, the issuer can be punished.

This reinforces the caution in tokenizing assets, rights, and projects with a qualified tokenization company with the expertise on the subject to avoid future losses.

In 2021, CVM received 34 sandboxed projects. Of the 4 approved, 3 are business tokens, which shows the body’s willingness to promote tokenization while defining broader rules for crypto companies to enter and operate in this market.


CVM has defined the taxonomy of business tokens in the following categories:

  • Asset tokens: these are those that represent tangible and intangible assets, and in this category, the body has gathered traditional assets (real estate, inventories, receivables, collectibles), security tokens, and stablecoins;
  • Utility tokens; known as utility tokens, are those used to represent access to services and products;
  • Payment tokens: These are cryptocurrencies, used as a medium of exchange and store of value.

An important definition is that CVM understands that an asset token can be a security or not. Also, the classes created are not immutable and a token can belong to more than one category. His role within a project is what will define his classification.

The taxonomy is intended to facilitate legal understandings about tokens when they are needed.


Whether to offer tokenized assets and raise funds or to invest in tokenization projects and make money work for you, [067-028] BLOCKBR has all the necessary know-how for your success.

From best practices for developing tokenization projects, focused on the best cost-benefit ratio, to a secure token marketplace, simple to use and with attractive and safe offers.

Come and get to know our work!

BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital assets, in the process of tokenizing assets.

The supply of physical assets and tokenized financial assets, both current and new, is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.

We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.

Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?

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