Greenville Leader

Rep. William Timmons (SC-04) and Rep. Ritchie Torres (NY-15) recently introduced the Tokenization Report Act of 2024, which has been scheduled for a hearing before the House Financial Services Committee on June 5, 2024. The legislation mandates that the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the National Credit Union Administration submit a report to Congress on trends related to tokenizing traditional assets.

The report will provide insights into various aspects of blockchain systems and their implications for financial systems. Key areas of focus include:

- Benefits and risks associated with tokenizing traditional assets using blockchain technology

- Differences between permissioned and permissionless blockchains

- Current interoperability and integration capabilities of blockchain technology

- Emerging global regulatory approaches and their impact on capital requirements

- Technological capabilities required for asset tokenization

- Control features affecting risk profiles post-tokenization

- Legal requirements for asset tokenization

“I am proud to introduce the Tokenization Report Act,” said Rep. William Timmons. “This legislation will provide crucial insight into the adoption and utilization of Blockchain technology within our traditional financial institutions. Tokenization is quickly becoming a cornerstone of our Financial Sector, and Congress must understand this rapidly developing technology to govern properly. I look forward to the hearing on June 5th to discuss the bipartisan Tokenization Report Act.”

“The Tokenization Report Act, a new piece of bipartisan legislation that Rep. Timmons and I are introducing, would pave the road for the future of Blockchain,” said Rep. Ritchie Torres. “By promoting transparency, eliminating needless inefficiencies, increasing accessibility, and reducing risk, we can work across the aisle to proactively legislate smart policy for the Blockchain industry instead of reacting to issues after they arise. Tokenization is the future and it’s time for the government to get smart and ensure that the industry works well for everyone.”

The bill has received endorsements from Digital Asset and the Digital Chamber of Commerce.

“We commend Rep. Timmons and Rep. Torres on introducing this important bill," said Yuval Rooz, Co-Founder and CEO of Digital Asset. "As tokenization continues to gain momentum, it is important that regulators in the U.S. understand its transformative impacts... To reap full benefits... banks need to choose a blockchain technology... delivering both functional control... privacy required by regulators as well as connectivity... interoperability across market."

Chief Policy Officer Cody Carbone added: "Tokenization is revolutionizing financial sector efficiency, transparency, security... As traditional assets move onto blockchain networks... transformation enhances trust reduces risks... The Digital Chamber fully supports this legislation commends Congressman Timmons leadership."

Asset tokenization involves creating digital tokens on a blockchain or distributed ledger representing real-world assets, offering benefits such as liquidity, accessibility, transparency, composability while automating manual processes reducing inefficiencies risks enhancing transparency tracking ownership returns mitigating fraud improving trust.

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