‘Regulatory uncertainty’ remains barrier to blockchain innovation, says expert

With the increasing adoption of blockchain by traditional financial institutions, integrating this technology into well-established systems presents both potential and obstacles.

Sandra RoCEO of Global Blockchain Business Council (GBBC)recently spoke about these challenges, sharing his views on the foundational work needed for blockchain progress in finance. Ro will develop these topics during the next Benzinga Event on the Future of Digital Assets.

Connecting Blockchain to Existing Financial Systems

Ro noted that many financial companies are creating tokenized products, such as money market funds and bonds, while working to connect blockchain systems with traditional financial structures.

“Institutions… are moving towards developing tokenized products like money market funds, bonds and pensions,” she said. According to Ro, these projects aim to make blockchain technologies compatible with each other and with conventional infrastructure, creating a system in which these tools can operate across multiple financial platforms.

Meet industry standards and infrastructure needs

Ro highlighted that the need for uniform standards was a central theme of the recent SIBOS conference. Groups such as FastTHE Depository Trust & Clearing Corporation (DTCC)), Deutsche BörseAnd Euroclear are working to create frameworks to support blockchain development.

In Ro’s view, a crucial step for these systems to deliver on their promises is solving what she called “the digital money part” of tokenized transactions. Addressing this part of the system, she suggested, is essential for technology to bring full value to the financial sector.

The role of regulatory clarity

Ro also highlighted regulatory uncertainty as a challenge to advancing blockchain in finance. “Much work is underway in the industry to achieve scale, but…regulatory uncertainty hinders scale and innovation,” she noted.

Ro highlighted ongoing initiatives, including the Digital Asset Market Subcommittee (DAMS) under the GMAC, which aims to develop consistent definitions for digital assets. This work, she said, could help reduce regulatory confusion and provide a simpler path for future industry progress.

As blockchain continues to enter finance, Ro’s comments reveal that achieving technical interoperability and regulatory clarity will be vital to the future of the sector. The upcoming Benzinga Future of Digital Assets event will bring together experts to discuss these fundamental topics in more depth.

As the digital assets market continues to mature, the convergence of regulatory changes, M&A activity, and adoption trends will define the future of this dynamic field. Benzinga’s Future of Digital Assets event in New York this November will provide industry leaders and investors with a platform to further explore these developments, providing insight into the evolving regulatory environment and the latest dynamics of the market.

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Image: Mohamed Hassan from Pixabay