Hi Hivers, hope you are enjoying your weekend.
As I was delving into the U.S. Senate’s crypto bill, I must confess I was greatly pleased to see a feature being included that explicitly states tokenized stocks as securities. Though this is just a technical step, it keeps the door wide open for the whole crypto ecosystem to flourish, and here is the reason that this point from my crypto perspective experience is so much of a new era indicator.
Tokenized stocks are nothing but digitized traditional shares came from a blockchain environment. They combine the advantages of digital currency, such as rapid settlements, straightforwardness, and global-standard low-cost, with the property of the stocks realm. The Senate's resolution to categorize these are securities according to already existing financial laws is one of the most significant moves toward acceptance. This is not different from the government saying, "We not only acknowledge you, innovators, but also ready to incorporate your technology into the system." The crypto space is not thriving without the help of this kind of certainty.
What really makes me happy about this move is that it allows tokenized stock to be part of the game with full legitimacy. By putting them into the securities system, the Senate takes the necessary steps to investor protection and management that are the same in traditional stocks. This is not to say that the innovation will be suppressed but rather strengthened by this step. Investors wearing the regulatory safety net can confidently put money into tokenized assets. For me, this move is very suggestive of a future scenario where financial products based on blockchain technology are not the exotic but the common ones.
This clause also entices many businesses to go the tokenization after it. Having the rules spelled out and adherence to them, companies are encouraged to bring out new ideas without being worried about legal ambiguities that are typical in regimes with no proper law enactments. Think of startups that mint shares to fund themselves from global investors or divide ownership into shares that make investing affordable to all. Being a firm believer in the ability of crypto to make the financial market a level playing field, I see this as the ignition to that dream. This will be what blockchain platforms will use to develop the most innovative ways of trading and owning.
There are those who may say just because of this, crypto stays under the umbrella of “old-school” regulations, but I choose to see it from another perspective. What is going on here is not blocking but embracing the blockchain by the traditional system. The crypto world has always been longing for this kind of definitive stance, and here it is indeed. I take it as a connection between conventional finance and the decentralized future which I am really passionate about. Would there be difficulties? Probably, yes. Some startups may have a hard time dealing with securities laws. But on the other hand, the tradeoff is acceptable - adoption leads to legitimacy, and legitimization is the main reason of innovation.
Reflecting on the matter I can say that the feeling of optimism is what prevails in me. This move by the Senate confirms that they are really tuned to the signals coming from the crypto space and are ready to shoot in its support. It is a step towards a world where blockchain is the new standard and changes finance for the better, and I welcome that future with open arms.
Posted Using INLEO