Congress to Debate Tokenization as Blockchain Eyes $100 Trillion US Markets

Congress is preparing to take a major step into the future of finance, with a key hearing set to examine how blockchain technology could reshape U.S. capital markets.

Lawmakers on the House Financial Services Committee are expected to focus on tokenization — the process of converting traditional financial assets into digital tokens on a blockchain. The discussion could have far-reaching implications, with some estimates putting the U.S. capital markets at more than $100 trillion.

The hearing will feature major players in both traditional finance and the crypto industry, including leaders from the Blockchain Association, the Securities Industry and Financial Markets Association, and Nasdaq.

At the center of the debate are two key issues: how digital assets should be classified under federal law, and whether blockchain technology can be used to settle trades faster and more efficiently.

Supporters argue tokenization could modernize outdated financial systems, reducing settlement times from days to seconds. Critics, however, are expected to raise concerns about regulation, market stability, and investor protection.

The hearing also comes amid growing attention on stablecoins and recent developments in the crypto space, which could influence upcoming legislation, including proposals like the Clarity Act.

The discussion begins at 10 a.m. in Washington, D.C., and could mark a turning point in how digital assets are integrated into the broader financial system.

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