On March 5, the FDIC, the Fed, and the OCC issued a set of frequently asked questions (FAQs) clarifying the capital treatment of tokenized securities. The agencies explained that eligible tokenized securities should be treated the same as their non-tokenized equivalents under the capital rule. They reaffirmed that the capital rule is technology neutral, so the use of distributed ledger technology to issue or transact in securities does not affect their regulatory treatment. The FAQs also noted that derivatives referencing eligible tokenized securities should receive the same treatment as derivatives tied to traditional securities, and that banking organizations must maintain sound risk management practices and comply with applicable laws. The agencies stated that eligible tokenized securities can qualify as financial collateral under the capital rule if they meet all relevant criteria, including a perfected, first-priority security interest. They clarified that capital treatment does not vary between “permissioned” and “permissionless” blockchains. As financial collateral, such securities would be subject to the same “haircuts” as their non-tokenized counterparts.