SEC Issues No-Action Letter for Franklin Templeton OnChain Government Money Market Fund

The US Securities and Exchange Commission has issued a no-action letter for Franklin Templeton’s OnChain Government Money Market Fund.

Bloomberg ETF analyst James Seyffart said on August 12 that the SEC issued the letter to allow 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 over violations of current rules in a specific case.

The move opens the way for Franklin Templeton’s registered funds, including mutual funds and exchange-traded funds, to hold the on-chain fund even if they do not strictly meet custody requirements under the Investment Company Act of 1940.