The tokenization sector continues to gain momentum, with big crypto, large banks, and Wall Street institutions at the forefront. However, small enterprises are often overlooked in this excitement.
A recent hearing by the U.S. House Financial Services Committee highlighted the importance of regulatory clarity for the growth of tokenization. Salman Banaei, General Counsel of Plume Network, testified that foreign jurisdictions are not waiting on what the SEC or Congress decides to do.
In order to promote a robust tokenization sector with onramps for traditional small businesses and micro entities, policy and regulatory work is needed. Market structure legislation in the U.S. Senate has a section on tokenization, but it's stalled. However, guidance is trickling in and talks of harmonization across regulatory agencies are encouraging.