The House Financial Services Digital Assets Subcommittee plans to conduct a hearing on June 5 focused on real-world asset (RWA) tokenization, exploring its potential benefits in enhancing market efficiency.

Congress will hear testimony from industry experts to evaluate how RWA tokenization can contribute to more efficient markets. This initiative by the US government is crucial due to the sector's current size and projected growth. Research by global consulting firm Roland Berger estimated the industry's value at $300 billion in 2023, with expectations of expanding significantly to $10 trillion by 2030.

BlackRock recently led a $47 million funding round for Securitize, a key player in RWA tokenization, signaling a strategic commitment to digitizing capital markets for greater accessibility and efficiency. This involves creating digital tokens for assets such as equities and bonds, facilitating their trading on blockchain platforms.

Regarding the upcoming hearing, details about the expert witnesses scheduled to testify remain undisclosed. Securitize CEO Carlos Domingo confirmed his participation on May 31, addressing speculation by Fox Business' Eleanor Terret about potential involvement from BlackRock. However, BlackRock has not issued a statement regarding participation at the time of this report.

Chainlink Labs denied rumors suggesting their chief scientist, Ari Juels, would attend the event, emphasizing that the company is unaware of any representatives scheduled to appear.

While the House Financial Services Committee has not specified the specific aspects of RWA tokenization it will focus on, other parts of the US government have shown interest. For instance, the Office of the Comptroller of the Currency (OCC) hosted an RWA symposium in February, addressing legal foundations, use cases, risk management, and regulatory issues related to RWA tokenization. Additionally, the US Federal Reserve published a paper in August 2023 discussing how tokenized assets could impact market volatility by transferring risks from cryptocurrency markets to traditional reference markets.

At the state level, Iowa advanced legislation in February that defines tokenized RWAs as personal property, indicating a supportive regulatory stance on this evolving sector.