As the U.S. Congress gears up for what is predicted to be its most crypto-friendly session yet, Tanya Solati, vice president of business development at Propy, sees a unique opportunity for significant regulatory advancements in the digital asset space. Solati, who will be speaking at the upcoming Benzinga Future of Digital Assets event on November 19th, believes that the key to unlocking wider adoption of digital assets lies in addressing two crucial areas: tax reform and the establishment of clear asset classifications.
Solati identifies the current tax laws as a major obstacle to broader cryptocurrency usage. Under existing regulations, every transaction involving the exchange of crypto for fiat currency triggers a capital gains tax. This creates a significant barrier to daily use, making it impractical for everyday transactions. Solati argues that a substantial change could come from reworking tax laws, particularly for smaller transactions. By removing the penalties associated with these exchanges, digital currencies could become more user-friendly and practical, potentially driving greater engagement.
Another key area of focus for Solati is the tokenization of real-world assets (RWAs), which she sees as a pivotal step in the evolution of digital finance. She cites the substantial investments made by BlackRock in tokenized RWAs as a clear indication of the shift towards a future where traditional finance players are deeply embedded in the digital asset landscape. However, Solati emphasizes that to fully realize the potential of tokenization, regulatory frameworks must be adapted to facilitate smoother transaction processes and eliminate tax triggers at every step. Such adjustments would create a more attractive environment for investors and users, allowing the RWA market to flourish.
Beyond tax adjustments, Solati stresses the importance of clearly defining the different types of digital assets, such as cryptocurrencies, stablecoins, and DeFi tokens. She believes that establishing clear definitions would provide the foundation for more precise regulations, leading to better compliance and ultimately, greater adoption.
Solati envisions a future where these regulatory developments pave the way for a more organized and accessible digital asset environment. With clearer guidelines, she believes that institutions, retail investors, and everyday users will be more comfortable interacting with digital currencies. While challenges remain, Solati remains optimistic, viewing the upcoming legislative session as an opportunity to address the obstacles hindering digital asset adoption, particularly through tax reforms and clear regulations.
At her presentation at the Benzinga Future of Digital Assets event, Solati will elaborate on how regulatory adjustments can transform the digital asset space. By focusing on policy adjustments that simplify usage, encourage tokenization, and clarify asset classifications, Solati believes the digital asset market can become more accessible and practical, setting the stage for broader adoption in the years to come.
As the digital asset market continues to mature, the convergence of regulatory shifts, M&A activities, and adoption trends will shape the future of this dynamic field. Benzinga’s Future of Digital Assets event in New York City on November 19th will provide industry leaders and investors with a platform to explore these developments further, offering insights into the evolving regulatory environment and the latest market dynamics.
