- In a hearing by the U.S. House Committee on Financial Services, Nasdaq supported the CLARITY Act and said tokenized securities should follow existing United States market rules.
- Lawmakers and industry participants discussed benefits like faster settlement and lower costs.
- A broad consensus emerged that tokenized assets are still securities and should have the same rights and protections as traditional financial instruments.
Nasdaq Inc (NDAQ) called for clear statutory guidance on tokenized securities on Wednesday, warning that blockchain-based markets must integrate with existing systems rather than create parallel structures that could fragment U.S. capital markets.
In a hearing by the U.S. House Committee on Financial Services, lawmakers and industry participants examined how tokenization could reshape financial infrastructure while maintaining investor protections and market integrity.
Mr. John Zecca, Executive Vice President and Global Chief Legal Officer of Nasdaq, said tokenization should function as an upgrade to existing market systems, not a replacement. “A tokenized share is still a share,” the exchange said, adding that changing the technology used to represent a security should not alter its legal status, rights, or protections under U.S. securities laws.
The exchange backed the CLARITY Act, stating that clear statutory guidance could help ensure innovation reinforces public markets while supporting capital formation and maintaining U.S. competitiveness.
Participants at the hearing outlined potential benefits of tokenization, including faster settlement, lower costs, greater transparency, and broader market access. However, they also raised concerns about investor protection, market fragmentation, liquidity, and operational risks associated with new infrastructure.
Tokenized securities are still subject to existing laws and should have the same rights and protections as traditional assets. Industry representatives also said regulators should set clear rules rather than rely on temporary relief.
Nasdaq's stock was trading down 0.09% on Wednesday afternoon. On Stocktwits, the retail sentiment around NDAQ remained in the ‘bearish’ territory, while chatter around it remained at ‘high’ levels over the past day.
Global Push For Tokenization Increases Pressure On US Regulators
Traditional financial institutions and market infrastructure providers are integrating blockchain-based systems, while jurisdictions outside the United States continue advancing tokenization frameworks. The hearing reflected growing urgency among policymakers and industry participants to establish clear rules that allow innovation to remain within U.S. markets while preserving investor protections.
The discussion comes as policymakers weigh the scope of regulatory authority between agencies and Congress, with industry participants broadly calling for technology-neutral regulations and formal rulemaking processes to guide the evolution of tokenized markets.
On the same day, Franklin Templeton, a major global investment firm, launched exchange-traded funds (ETFs) that can be traded through crypto wallets around the clock, demonstrating how tokenized products are entering live markets.
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