Tesfaye sees the legislation as a pivotal step toward legitimizing blockchain innovation and encouraging dialogue between Web3 leaders and policymakers. Stablecoins, which are often backed by government bonds, are becoming a vital entry point for RWA adoption. Meanwhile, Republican senators have introduced the Responsible Financial Innovation Act to complement the House’s CLARITY Act, aiming to establish a clearer digital asset market structure.
GENIUS Act Could Fuel Rise of Tokenized RWAs
Real-world asset (RWA) tokenization is quickly becoming one of Wall Street’s most significant innovations, and its momentum is expected to grow even faster after the recent passage of the GENIUS Act in the United States. According to Solomon Tesfaye, the newly appointed chief business officer at Aptos Labs, the legislation is a strong signal that US lawmakers are ready to embrace responsible blockchain innovation.
Tesfaye pointed out how the GENIUS Act—short for Guiding and Establishing National Innovation for US Stablecoins—is already encouraging more dialogue between policymakers and Web3 leaders, giving institutional players a lot more confidence to build long-term digital asset strategies.
The GENIUS Act was passed by the US House of Representatives and signed into law by President Donald Trump. It provides a regulatory framework for the $260 billion stablecoin market. While stablecoins are not typically included in RWA metrics, their backing by government bonds and other tangible assets effectively positions them in the broader RWA landscape.
Tesfaye explained that stablecoins serve as a key on-ramp for RWA adoption by offering predictability, improved liquidity, reduced transaction costs, and a smoother bridge between traditional finance and decentralized finance.
To date, the bulk of RWA tokenization focused on private credit and US Treasury debt. A report by RedStone, Gauntlet, and RWA.xyz found that private credit made up around 60% of the RWA market as of June, with tokenized Treasurys representing about 28%.
RWA value by category (Source: RWA.xyz)
Tesfaye believes that these asset classes are ideal starting points for bringing traditional financial products onto blockchain infrastructure, thanks to their ease of settlement, trading, and fractionalization when on-chain. However, he also sees potential for tokenization to expand into more sophisticated and less traditional areas like derivatives, intellectual property, and other complex financial products, especially as the ecosystem matures.
Aptos itself quickly stepped up as a key player in the RWA space. Data suggests that the total value of tokenized RWAs on the Aptos blockchain exceeded $540 million in June. This growth has been fueled by issuers like Berkeley Square of the PACT Consortium and BlackRock’s BUIDL fund, which made its debut on Aptos less than a year ago.
With a much more favorable regulatory environment now in place, Aptos and other blockchain platforms are well positioned to lead the next wave of financial innovation.
Senate Drafts New Law for Crypto Regulation
Only time will tell what the effect on new crypto bills will be on the crypto space. In fact, Republican leaders on the US Senate Banking Committee introduced a draft version of legislation that is aimed at establishing a clearer digital asset market structure, potentially aligning with a bill that already passed by the House of Representatives.
On Tuesday, Senators Tim Scott, Cynthia Lummis, and two other Republicans released the discussion draft, which they said builds on the Digital Asset Market Clarity (CLARITY) Act passed by the House on July 17. This new Senate initiative is tentatively titled the Responsible Financial Innovation Act.
(Source: US Senate Committee on Banking, Housing and Urban Affairs)
Senator Scott explained that lawmakers across both chambers are working toward the shared goal of creating clear and practical rules for the digital asset sector. While the House recently approved three crypto-related bills with bipartisan support, GENIUS Act passed both chambers and was signed into law by President Donald Trump.
Both the House and Senate versions of the market structure legislation propose updates to disclosure requirements under the Securities Act of 1933. This reflects the consensus that current laws are inadequate for regulating digital assets. The CLARITY Act promotes increased cooperation between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in developing digital asset transaction frameworks.
The Senate's draft also introduces provisions concerning “ancillary assets,” which refers to digital assets that are not categorized as securities. These updates are aimed at better distinguishing different types of tokens and providing clarity to developers, issuers, and investors.
(Source: US Senate Committee on Banking, Housing and Urban Affairs)
Liat Shetret, vice president of global policy and regulation at Elliptic, pointed out that the CLARITY Act’s advancement to the Senate is a sign of mounting support for comprehensive crypto policy. However, she also warned that full passage may take time, especially with Congress heading into its summer recess.
Despite Republican control of the Senate, the bill’s future is still uncertain. Although more than 70 House Democrats joined Republicans in supporting the CLARITY Act, any amendments made by the Senate could reignite debates or lead to resistance.
