Franklin Templeton Met SEC Crypto Task Force on 1940 Act Issues Under Innovation Exemption

HIGHLIGHTS Franklin Templeton seeks SEC clarity on potential 1940 Act issues under Innovation Exemption. The firm asked if tokenized money market funds need more relief to trade on a tokenized securities venue Franklin Templeton need clarity on whether a relief is required for liquidity pool not treated as an investment company. Franklin Templeton met with the Crypto Task Force of the US Securities and Exchange Commission (SEC). The $1.8 trillion AUM financial services giant seeks clarity over how the agency’s innovation exemption applies to tokenized money market funds, tokenized National Market System (NMS) ETFs, and tokenized funds on liquidity pools.