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U.S. Congress will examine tokenized securities in the context of current regulatory frameworks.
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Blockchain Association and Ripple-linked companies join key policy hearing discussion
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SEC approves Nasdaq’s pilot program to keep tokenized trading within the existing market rails.
The U.S. Congress will review the role of tokenization on financial markets. Lawmakers and industry representatives will meet for a formal meeting titled “Tokenization, the Future of Securities and Modernizing Capital Markets.”
The session is scheduled for next Wednesday, at 10:00 a.m. ET. The session will be hosted on Wednesday, October 10, at 10:00 a.m. ET by the House Financial Services Committee. It is expected to focus primarily on how tokenized assets can fit into existing regulatory frameworks.
Industry Voices Join Congressional Debate
Industry Voices Join Congressional Debate
According to the information shared in advance, the hearing will include testimony by key participants from the digital asset sector. Summer Mersinger is one of the scheduled witnesses. The association includes Ripple and several other major crypto firms. This puts industry stakeholders in the forefront of policy discussions.
The session will bring together legislators and market participants to discuss how tokenization can be integrated into traditional financial system. Discussions will be focused on the implications of capital markets infrastructure, and how regulatory clarity can develop while protecting existing investor rights.
Market observers have noted, that while stablecoin laws have received a lot of attention, tokenization has emerged as a parallel interest in policy discussions. The hearing is part of a larger effort to assess how digital technology may influence securities issuance and trading.
Related: SEC Says tokenization does not change securities status
Nasdaq pilot operates within existing framework
Nasdaq pilot operates within existing framework
The hearing was held in response to recent regulatory developments regarding Nasdaq’s tokenization initiative. The U.S. Securities and Exchange Commission has approved the exchange’s plan to test tokenized versions for select securities in a pilot program. The plan allows Nasdaq tokenized trading of certain Russell 1000 stocks, index ETFs and other securities while maintaining the current market structure.
Under the framework approved, tokenized trades continue to be processed by the Depository Trust Company. If necessary, transactions can be reverted to traditional settlement systems.
Nasdaq presented the proposal in September and compared tokenization with earlier shifts, such as decimalization or electronic trading. During the review, the SEC acknowledged public comments that raised concerns about pricing gaps, surveillance and legal uncertainty.
John Zecca, Nasdaq’s Chief Legal Officer, said that despite these concerns, the approval confirms that tokenization can be implemented within current U.S. regulations without affecting core investor protections. The SEC also reiterated that tokenized securities remain securities under federal laws, stressing that blockchain implementation doesn’t change their legal classification.
Related: Hoskinson Warns that CLARITY Act Creates New Token Securities by Default
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