The U.S. Securities and Exchange Commission handed Franklin Templeton a regulatory green light that the asset management industry has been watching for. The SEC’s Division of Investment Management issued a no-action letter on August 12, 2026, permitting Franklin’s own funds to invest in the Franklin OnChain U.S. Government Money Fund, known by its ticker FOBXX.
What the no-action letter actually does
In this case, the letter removes investment restrictions that previously prevented other Franklin-managed funds from putting money into FOBXX. The practical effect is that Franklin can now route capital from its broader fund lineup into FOBXX, deepening the pool of assets flowing into a blockchain-native investment vehicle. For a fund that already held over $360 million in assets under management as of March 31, 2024, that is a meaningful expansion of potential capital access.
FOBXX operates as a government money market fund under Rule 2a-7, targeting a stable $1.00 per share value. Its underlying holdings are about as traditional as it gets: U.S. government securities, cash, and fully collateralized repurchase agreements.
The fund that started it all
