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Oraclizer Research

EIP-RCP Draft Proposal Released: Regulatory Compliance Protocol for Tokenized Assets

Oraclizer Update

The Oraclizer team and Horizen Labs are officially releasing the EIP-RCP (Regulatory Compliance Protocol for Tokenized Assets) draft proposal. This proposal is an Informational EIP that defines a regulatory compliance framework for tokenized capital markets—a first step toward establishing a common reference point for compliant tokenization in the Ethereum ecosystem.

Why EIP-RCP

Interoperability of tokenized assets is not merely a technical challenge. For tokenized assets to meaningfully interact across different blockchain networks and regulatory jurisdictions, a common vocabulary and protocol for verifying and sharing compliance status is essential.

While security token standards like ERC-1400 and ERC-3643 exist today, they address only portions of regulatory requirements and lack a unified conceptual framework. For instance, ERC-1644’s single controllerTransfer function cannot distinguish between legally distinct regulatory actions such as asset freeze (FREEZE) and confiscation (CONFISCATE).

The Five Principles

EIP-RCP organizes 31 core requirements derived from systematic review of official guidance from 15 global financial regulatory authorities (FATF, BIS, SEC, MAS, FCA, and others) under five fundamental principles:

  1. Traceability: The ability to identify, track, and audit all participants, assets, and transactions throughout their lifecycle
  2. Privacy: Protection of sensitive information while maintaining necessary transparency for regulatory oversight
  3. Enforceability: The ability for authorized parties to execute regulatory actions on tokenized assets
  4. Finality: Assurance that transactions and ownership records are legally conclusive under defined conditions
  5. Tokenizability: The ability to represent real-world assets as tokens while preserving their legal, economic, and regulatory characteristics throughout their lifecycle

Key Contributions of the Proposal

The key contributions that EIP-RCP provides to the Ethereum ecosystem are:

  • Common Vocabulary: Standardized definitions for compliance terminology
  • Completeness Reference: A protocol for assessing whether existing standards meet requirements
  • Interoperability Foundation: Shared requirements enabling compatibility across different standards

The proposal includes a Requirements Coverage Matrix comparing which of the 31 requirements are met by ERC-20, ERC-777, ERC-1400, and ERC-3643, clearly illustrating the gaps in the current ecosystem.

What Informational EIP Means

EIP-RCP is classified as an Informational EIP. Unlike Standards Track EIPs that define implementation interfaces, this document defines a conceptual framework and requirements. The rationale for this classification includes:

  • Foundational nature: Defines requirements rather than implementation
  • Implementation flexibility: Multiple standards can implement these requirements differently
  • Jurisdictional adaptability: Different jurisdictions may require different subsets
  • Stability: Conceptual framework can remain stable while implementations evolve

A separate Standards Track EIP (ERC-TRUST) implementing this framework will be proposed in the future.

Next Steps

With the release of the EIP-RCP draft proposal, we welcome feedback from the Ethereum community and regulatory compliance practitioners.

The full proposal is available for download below.

Download EIP-RCP Draft Proposal (PDF)

Learn More

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