Svmuu News: The U.S. House Financial Services Committee held a hearing titled "Tokenization and the Future of Securities: Modernizing Capital Markets" on Wednesday. Republican Representative Andy Barr stated that securities tokenization is inevitable, and the U.S. needs to advance regulatory modernization that balances investor protection with leading innovation.
The SEC has previously authorized multiple entities to advance tokenized securities businesses. In December last year, the SEC authorized DTCC to tokenize specific high-liquidity assets on pre-approved blockchains for a period of three years. Subsequently, the New York Stock Exchange indicated it is developing a platform for trading and on-chain settlement of tokenized securities. The SEC also approved rule changes allowing Nasdaq to support tokenized stock trading. SEC Chairman Paul Atkins stated that the agency will solicit public comments on a series of related issues, including an innovation exemption proposal that could provide a regulatory sandbox for on-chain assets.
Some lawmakers expressed concerns about this. Democratic Representative Brad Sherman worried that this move could create a two-tiered market, allowing tokenized securities on blockchain platforms to bypass core securities regulations. Committee Democratic Ranking Member Maxine Waters referenced the lessons from the 2008 financial crisis and pointed out the conflict of interest issue arising from President Trump's reported profits of approximately $1.4 billion from his crypto business. SIFMA President Kenneth Bentsen, Jr. emphasized that innovation should be advanced within the existing legal and regulatory framework, while Blockchain Association CEO Summer Mersinger warned that without clear regulation, innovation will continue to shift overseas.