Digital assets’ promise faces growing regulatory setbacks

Homepage > News > Finance > Digital assets’ promise faces growing regulatory setbacks Just as tokenized real-world assets (RWAs) pass the $30 billion mark in 2026, multiple new studies have warned that a lack of regulation and fragmented global frameworks are holding back digital asset adoption, despite the widely acknowledged benefits the technology can provide to traditional finance (TradFi). RWAs surge as institutions go on-chain Regulatory gaps slow stablecoin adoption Crypto ETPs gaining traction with investors Tokenized RWAs booming Tokenized “real-world” assets (RWAs)—traditional financial instruments represented on-chain as tokens—have surged ten-fold in two years, currently at $38.82 billion, with nearly half held in U.S. Treasury debt. According to venture capital fund a16z Crypto, the growth in such products reflects rising institutional demand to put traditional financial instruments on chain, from government bonds and commodities to equities and private credit. “While U.S. Treasuries dominate today, the asset class is broadening, with more categories gaining meaningful share in recent quarters,” said a16z. Tokenized RWAs are significant because they bridge the...