#regulatory framework

➤ Financial institutions are advised to pursue overseas RWA tokenization due to nascent domestic regulations, focusing on jurisdictions like Hong Kong, Singapore, and the US. ➤ Key considerations for cross-border RWA operations include jurisdiction selection, licensing, asset definition, investor scope, and settlement arrangements. ➤ The article emphasizes proactive engagement with overseas markets and on-chain native platforms rather than waiting for domestic regulatory clarity, highlighting the urgency to gain market experience.

➤ Ondo Finance has launched tokenized US stocks and ETFs on the Ethereum blockchain, operating entirely within the US regulatory framework. ➤ This initiative, in partnership with Broadridge, ensures token holders retain voting rights and shareholder communications, addressing previous scalability and accessibility issues. ➤ The launch signifies a pivotal moment for digital asset adoption, integrating traditional securities with blockchain technology under SEC guidelines.

➤ A report indicates that despite a $60B market cap, 56% of tokenized RWA value shows no weekly on-chain activity, highlighting a gap between issuance and actual utility. ➤ The market is highly concentrated, with 88% of value held by just 62 assets, and only tokenized US Treasuries have reached production-grade maturity. ➤ Significant barriers remain, including limited access for retail investors, lack of clear regulatory frameworks, and an infrastructure gap, hindering broader adoption beyond tokenized Treasuries.

➤ The SEC is seeking public feedback on innovative ETF products and prediction market instruments to assess their compliance with current regulations. ➤ The consultation addresses how these emerging vehicles, including prediction market ETFs, fit within existing securities laws and registration procedures. ➤ This initiative is part of a broader digital asset policy review, occurring alongside other regulatory assessments and enforcement actions.

➤ JPMorgan supports U.S. legislation for digital asset regulation but emphasizes the need for robust safeguards comparable to traditional finance. ➤ The bank warns against creating new regulatory gaps and stresses that assets functioning as securities or exchanges should adhere to existing laws. ➤ JPMorgan specifically calls for stringent rules on stablecoins and tokenized deposits, including capital and consumer protection, while preserving AML tools.

➤ Galaxy Digital has reduced its probability estimate for the US Senate passing the CLARITY Act in 2026 to 50%, primarily due to tightening legislative timelines and procedural complexities. ➤ Key factors contributing to the downgrade include the lack of a unified Senate Banking-Agriculture bill text, no confirmed floor schedule, and the approaching August recess. ➤ Despite clearing the Senate Banking Committee, the bill faces criticism regarding potential yield rules for stablecoins and competition for agenda time with other legislative priorities like the SAVE Act.

➤ The Bank of Thailand is finalizing regulations for a Thai Baht stablecoin, prioritizing secure digital payments and settlements. ➤ The stablecoin aims to enhance financial infrastructure and support green finance initiatives, rather than speculative trading. ➤ The framework, developed through public consultation and sandbox testing, will ensure a 1:1 peg with the Thai Baht and involve licensed financial institutions.

➤ House Democrats are questioning the SEC's oversight of AI trading agents used by retail investors, citing concerns about investor protection and regulatory clarity. ➤ The lawmakers highlighted potential scope expansion of AI agents into various asset classes, including cryptocurrency, and the ambiguity in responsibility allocation between platforms and developers. ➤ The letter seeks answers on AI agent registration, existing SEC authority, and potential needs for new legislation to address risks posed by autonomous trading guidance tools.