Press Releases

Today, the House Financial Services Committee, led by Chairman French Hill (AR-02), is holding a Full Committee hearing to examine the impact of asset tokenization on capital markets, including its regulatory implications and the need to balance innovation with investor protection and market integrity.

Read Chairman Hill's remarks as prepared for delivery:

"Good morning. We stand at the threshold of a significant transformation in our financial landscape. Current early adoption efforts in the tokenization of assets are changing the ways securities are issued, traded, and recorded.

"By leveraging distributed ledger technology to represent financial instruments and their ownership, tokenization has the potential to streamline processes and introduce entirely new ones, promising greater efficiency, transparency, and accessibility.

"However, as tokenization becomes more prevalent in our capital markets, it raises important legal and regulatory questions. We must ensure that our existing securities laws are equipped to govern these modern, emerging technologies without stifling the very progress they offer. 

"Today’s hearing provides Members with an opportunity to identify regulatory gaps and inefficiencies that could create risk or hinder investor protection and orderly market objectives. We must foster an environment that supports growth while maintaining the investor protections that are the bedrock of our system. 

"As we move forward, we must also consider the broader impact of tokenization on market integrity and capital formation, while examining how it can enhance transparency and efficiency for investors, regulators, and market participants, including by upgrading certain compliance functions themselves. 

"Evaluating this impact will help this Committee better understand both the opportunities and the risks associated with this emerging technology.

"Today’s discussion is vital to shaping the future of our capital markets and guiding policy and legislative approaches that support innovation and the growth of U.S. capital markets, while maintaining strong investor protections.

"The United States has led the world in financial innovation, and it is essential that we continue to pave the way for future advancements in a manner that is responsible and supported by clear, effective regulatory frameworks.

"In doing so, we can help ensure that innovation serves the broader public interest, strengthens market integrity, and reinforces the United States’ continued leadership in global capital markets.

"I look forward to hearing from our witnesses today, and I yield back."

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