SEC Issues No-Action Letter for Franklin Templeton’s OnChain Government Money Market Fund
Suehyeon Lee
Summary
- The U.S. Securities and Exchange Commission issued a no-action letter for Franklin Templeton’s OnChain Government Money Market Fund.
- Bloomberg ETF analyst James Seyffart said the SEC’s no-action letter allows the on-chain government money market fund to be included in registered funds.
- The move means Franklin Templeton’s registered funds, including mutual funds and exchange-traded funds (ETFs), can hold the on-chain fund without strictly meeting custody requirements.
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The U.S. Securities and Exchange Commission has issued a no-action letter for Franklin Templeton’s OnChain U.S. Government Money Fund.
Bloomberg ETF analyst James Seyffart said on Aug. 12 that the letter allows Franklin Templeton’s on-chain government money market fund to be included in registered funds. A no-action letter states that the SEC will not recommend enforcement action on a specific matter under current rules.
The move clears a path for Franklin Templeton’s registered funds, including mutual funds and exchange-traded funds, to hold the on-chain fund even if it does not strictly meet custody requirements under the Investment Company Act of 1940.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.