Otto Lobo, president of Brazil's Securities and Exchange Commission (CVM), announced that the country's capital market regulatory infrastructure requires a mandatory transformation to a full tokenization model supplemented by AI-based monitoring mechanisms. The push for regulatory modernization follows a ruling by Brazil's Federal Supreme Court (ADC 7791) and recommendations from the International Monetary Fund (IMF). Under the new arrangements, the CVM will be permitted to retain 70% of the regulatory fees it collects, providing funding for the overhaul of its supervision systems.