Quick Read
- The SEC is considering lifting its moratorium on new online lending platforms, which has been in place since November 2021.
- New capital requirements and operational guidelines are proposed for financing and lending companies seeking to operate online platforms.
- The agency is also developing a ‘narrower,’ rule-by-rule exemption for tokenized securities, moving away from a blanket approach.
The U.S. Securities and Exchange Commission (SEC) is signaling a significant shift in its regulatory approach, considering the lifting of a moratorium on new online lending platforms (OLPs) while simultaneously working on a more restricted exemption for tokenized securities. These moves reflect an effort to balance increased access to credit and economic stimulation with robust consumer protection and responsible innovation.
Lifting Moratorium on Online Lending Platforms
The SEC announced on Friday, March 13, 2026, that it is reviewing the possibility of lifting the moratorium imposed on the registration of new online lending platforms operated by financing and lending companies (FLCs). This potential policy change, detailed in a draft memorandum circular issued for public comment on March 12, 2026, aims to enhance public access to credit while implementing stronger consumer protection measures. The public has until March 25 to submit comments and recommendations on the proposed guidelines.
The moratorium, in effect since November 5, 2021, under SEC Memorandum Circular No. 10, series of 2021, is being re-evaluated to promote responsible innovation, stimulate economic activity, and align OLP operations with consumer protection, market integrity, prudential objectives, financial inclusion, and the global trend toward digitalization. The proposed guidelines are designed to introduce stronger safeguards against abusive debt collection practices, referencing key legislation such as the Truth in Lending Act (RA No. 3765), the Financial Products and Services Consumer Protection Act (RA No. 11765), and the Data Privacy Act (RA No. 10173).
New Capital Requirements and Operational Guidelines
To support the potential lifting of the moratorium, the SEC is proposing new paid-up capital requirements for FLCs, tiered according to the number of OLPs they operate. Financing companies without OLPs would need P20 million in minimum paid-up capital, while lending companies would require P10 million. For companies operating OLPs, these requirements increase: P30 million for one OLP, P60 million for two to five OLPs, and P100 million for up to 10 OLPs for financing companies. Lending companies would need P20 million for one OLP, P30 million for two to five OLPs, and P50 million for up to 10 OLPs. The number of OLPs an FLC can operate would be capped at 10 to ensure manageable oversight and mitigate systemic risk. Existing FLCs will be granted a three-year period to comply with these new capital requirements through a submitted “Capital Compliance Plan.”
Furthermore, the SEC is proposing a “Single Certificate of Authority (CA)” policy, meaning each FLC will receive only one CA covering its principal and all branch offices, eliminating the need for separate CAs per branch. All existing and proposed branch offices must be declared in the company’s Business Plan.
Developing a ‘Narrower’ Exemption for Tokenized Securities
In parallel, SEC Commissioner Hester Peirce indicated that the agency is developing a more restricted innovation exemption specifically for tokenized securities. This initiative follows a recommendation from the SEC Investor Advisory Committee’s (IAC) Market Structure Subcommittee. The IAC advised against a broad, “blanket” exemption, instead advocating for a “rule-by-rule” approach to reforms for tokenized securities, which are currently classified as securities under federal law.
The IAC’s recommendation emphasizes a principles-based approach due to the early stage of equity tokenization and its complex technological developments. This targeted approach aims to allow controlled experimentation with decentralized trading models while maintaining essential investor safeguards. The SEC is expected to consider this innovation exemption soon, providing time to craft a long-term regulatory framework that ensures tokenized securities comply with existing registration, disclosure, oversight, and settlement practices, but with tailored allowances for innovation.
The SEC’s dual focus on easing restrictions for online lending while implementing more tailored regulations for tokenized securities signifies a strategic effort to adapt to evolving financial technologies and market demands, aiming to foster growth and innovation within a framework of enhanced investor and consumer protection.