Regulatory delays in Washington could accelerate the expansion of tokenization companies into Europe, the UAE and Asia as firms seek greater legal certainty, according to Edwin Mata, CEO and cofounder of Brickken.
In a written interview with Crypto Briefing, Mata said the US remains a critical market for tokenization because of its deep capital markets and institutional investor base, but continued uncertainty over digital asset regulations could push companies to prioritize other jurisdictions.
CLARITY Act Faces a Harder Path
With the CLARITY Act facing a more difficult path under Democratic control of Congress, Mata said businesses making investment decisions years in advance need clearer rules to justify expansion costs.
He identified the UAE and Europe as the jurisdictions best positioned to attract additional investment, citing the UAE's direct engagement between regulators and digital asset companies and Europe's established regulatory framework. Singapore and Hong Kong could also benefit from increased institutional activity, he added.
Europe's Markets in Crypto Assets regulation, known as MiCA, provides a framework for crypto assets and service providers, although tokenized securities generally remain governed by existing financial regulations, including MiFID II.
Firms Weigh US Entry More Carefully
Mata said international tokenization companies are becoming more selective about entering the US rather than abandoning the market entirely. Establishing a presence requires significant investment in legal structuring, distribution and compliance, making regulatory clarity essential for companies planning long-term operations.
Brickken, a Barcelona-founded tokenization platform that has supported more than $660 million in tokenized assets across over 40 countries, is taking a similar approach. Mata said the US remains part of the company's expansion plans, but clearer treatment of tokenized securities and more predictable compliance requirements would help accelerate its entry.
The SEC has already taken steps toward supporting tokenized securities, including its Innovation Exemption, introduced in September. The temporary framework allows eligible tokenized stocks to trade through permissioned liquidity pools on qualifying venues, subject to restrictions on trading volume, listed securities and investor protections.
Mata said such exemptions can create opportunities for businesses but do not provide the same certainty as comprehensive legislation, particularly for companies evaluating whether their operations will remain compliant several years into the future.
Tokenization Demand Extends Beyond Crypto
Demand for tokenization is also expanding beyond crypto companies into private markets, real estate and alternative assets, according to Mata. However, he noted that representing an asset onchain does not eliminate existing securities requirements, leaving questions around custody, investor eligibility and secondary market trading.
Mata said a comprehensive US framework would need to establish clear rules for issuing, distributing and trading tokenized securities, including how ownership is legally recognized and what obligations apply to intermediaries. He expects meaningful regulatory progress over the next two years, although the timing of comprehensive legislation remains uncertain.
