US Congress, SEC step up talks on tokenization framework…regulatory overhaul moves into high gear

The US Congress and regulators are accelerating institutional discussions over the adoption of tokenized assets.

According to The Block on the 25th (local time), the House Financial Services Committee held a hearing titled “Tokenization and the Future of Securities Markets” to discuss the direction of introducing tokenized assets.

At the hearing, participants shared the view that tokenization is a key technology that will reshape capital-market infrastructure. Rep. Andy Barr (R) said, “The tokenization of securities has already begun, and regulatory modernization is needed.”

The SEC is also continuing related efforts. It is currently preparing to introduce an “investment innovation exemption” for tokenized assets, which could function as a form of regulatory sandbox.

Previously, the SEC allowed certain institutions to experiment with tokenized securities, and Nasdaq also won approval for rule changes to support trading in tokenized equities. The New York Stock Exchange (NYSE) is likewise developing a tokenized trading platform that includes on-chain settlement.

However, regulatory concerns are being raised in parallel. Rep. Brad Sherman (D) noted, “If exceptions are applied to tokenized assets, a dual-market structure could be created.”

Rep. Maxine Waters also stressed the need to verify what tangible benefits tokenization actually provides to investors and companies.

Traditional financial institutions are also taking a cautious stance. The Securities Industry and Financial Markets Association (SIFMA) is calling for gradual institutional design through public comment rather than regulatory exemptions.

Meanwhile, the industry warns that without regulatory clarity, innovation could move overseas.