Part 11/14:
However, the panel highlighted a crucial insight: outside the US, permissionless, decentralized markets are already flourishing. Assets like tokenized stocks and treasury funds are available on global platforms such as Binance, with permissionless trading and custody, bypassing traditional gatekeeping hurdles. This divergence creates a competitive tension, suggesting that US markets risk falling behind if they overly restrict innovation.
Regulators are increasingly aware of this dynamic, weighing investor protections against facilitating innovation. The European Union’s emerging rules on tokenized assets exemplify efforts to find a balanced regulatory framework that supports growth without compromising safeguards.