Congress to discuss potential benefits of RWA tokenization in June hearing
The House Financial Services Digital Assets Subcommittee will hold a hearing on real-world asset (RWA) tokenization on June 5 to discuss the emerging sector’s potential benefits.
Congress will listen to testimony from industry experts at the hearing to determine the potential benefits of RWA tokenization in facilitating efficient markets.
The US government’s decision to address RWA tokenization is critical because of the sector’s size and projected growth. Research from global consulting firm Roland Berger estimated the industry’s size at $300 billion in 2023, with the potential to grow 40x to $10 trillion by 2030.
Meanwhile, BlackRock recently led a $47 million funding round for Securitize, a key player in RWA tokenization. This partnership aims to digitize capital markets, making them more accessible and efficient.
BlackRock’s involvement highlights a strategic focus on RWA tokenization, which includes creating digital tokens for assets like equities and bonds, trading them on blockchain platforms
Expert witness list unconfirmed
The expert witnesses at the House’s upcoming hearing are largely unknown.
Securitize CEO Carlos Domingo confirmed he is slated to testify at the hearing on May 31 following speculation by Fox Business’ Eleanor Terret.
Domingo announced on social media:
“I am one of the expert witnesses for this hearing, and I am proud to represent the industry in this important meeting.”
Terret also wondered if someone from BlackRock would testify. However, the company has not made a statement on the matter as of press time.
Meanwhile, Chainlink Labs denied that chief scientist Ari Juels will attend the event.
A spokesperson for the firm told CryptoSlate that Chainlink Labs is unaware of any members attending the event and that rumors of Juels’ appearance are “conjecture from the community.”
Broader US government interest
The House Financial Services Committee has not yet stated what aspects of RWA tokenization it will focus on. However, other parts of government and their members have previously expressed broader expectations and concerns around the sector.
The Office of the Comptroller of the Money (OCC) hosted an RWA symposium in February. The event explored legal foundations, use cases, risk management, and control issues around RWA tokenization.
The US Federal Reserve published a paper on tokenization in August 2023, asserting that the tokenized assets could transfer volatility from crypto asset markets to reference markets.
Individual states have also taken action. In February, Iowa advanced a bill that redefines tokenized RWAs as personal property, representing a permissive stance.
