SharpLink CEO Says Mag 7 Stocks Could Be Tokenized ‘Sooner Than We Think’ Despite CLARITY Act Stalemate

• In a Crypto America podcast, SharpLink CEO Joseph Chalom estimated the top 10 companies are worth $25 trillion and ready for tokenization.
• Chalom added that the main roadblock to crypto legislation was ethics concerns, and that most lawmakers want to set the industry's rules of the game.
• He noted that financial centers abroad consider the United States to be the leader. 

SharpLink (SBET) CEO Joseph Chalom said the failure of the Digital Asset Market Clarity Act doesn't close the door on tokenized stocks, and he expects the Magnificent Seven to tokenize their shares sooner than markets think.

Chalom said on Wednesday's Crypto in America podcast that the CLARITY Act stalled in the Senate in September isn't a big deal, since the U.S. is still ahead. “Even though the Clarity Act didn’t pass, there is a green light to tokenize,” he said.

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Big Tech Tokenization Seen Soon

The 10 largest are worth $25 trillion, he said. He added that the Magnificent Seven, the group of megacap tech stocks, are tokenizing their shares. “It is going to fundamentally transform markets, and I think it’s going to happen sooner than we think,” Chalom said.

The Magnificent Seven include Microsoft (MSFT), Tesla (TSLA), Meta Platforms (META), Nvidia (NVDA), Amazon (AMZN), Apple (AAPL) and Alphabet (GOOG,GOOGL).

Chalom added that financial centers abroad consider the United States to be the leader. People in Asian and European capitals "feel like they are falling behind America, not that we’re going slow.” he said. 

Stablecoins have skyrocketed recently. The total supply of stablecoins was around $301 billion on Wednesday, DefiLlama data showed. Of that, about $299 billion is pegged to the U.S. dollar. 

Ethics Issues Held Bill Back

Chalom said most lawmakers are in favor of legislation around crypto. “Most senators and Congress people want to pass this,” he said. He pointed to “the ethics issues out there” as the main obstacle.

SharpLink Bets On Ethereum’s Role In Tokenized Assets 

A tokenization boom matters for SharpLink, whose main treasury asset is Ethereum (ETH). Ethereum is leading the way in both stablecoins and tokenized assets, said Chalom. More than half of all stablecoins run on Ethereum Layer One (L1) and Layer Two (L2), the main network and the faster networks built on top of it, he said.

SBET stock was up over 7% in midday trade. On Stocktwits, retail sentiment around SBET remained in the ‘bearish’ zone, as chatter stayed at ‘normal’ levels over the past day.

Chalom said SharpLink has not issued any debt or preferred stock, and the company hasn’t put up its Ethereum as collateral. 

Ethereum’s price was trading around $2,510, up over 2% in the last 24 hours. On Stocktwits, retail sentiment around ETH improved to the ‘bearish’ zone from the ‘extremely bearish’ zone, while chatter stayed at ‘low’ levels over the past day.

Read also: Grayscale Opens 10 Crypto Funds To In-Kind Transfers, Letting Investors Swap Tokens For ETF Shares

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