As the U.S. Congress heads toward what many predict will be its most crypto-friendly session yet, Tanya Solati, vice president of business development at Propy, saw this as an opportunity for meaningful regulatory progress.

Solati, who will be speaking at the upcoming Benzinga Future of Digital Assets event on Nov. 19, shared her perspective on what's needed to advance the digital asset space, particularly regarding tax reforms and tokenization.

Simplifying Tax Rules to Encourage Use

Solati pointed to the current tax laws as a significant barrier to broader adoption. Under existing rules, every crypto-to-fiat transaction results in a capital gains tax, making daily use impractical.

“A major game changer could be reworking tax laws, especially for small transactions,” Solati explained, emphasizing that removing such penalties could enable a more seamless user experience.

This reform would make digital currencies more suitable for everyday transactions, which she believes could drive wider engagement. Removing tax penalties on smaller exchanges would make digital currencies more practical, allowing users to trade, purchase and sell without constant tax implications.

Real-World Asset Tokenization Gains Momentum

A central focus of Solati's discussion was the tokenization of real-world assets (RWAs), which she believed was a crucial step in the evolution of the digital finance landscape.

"With BlackRock heavily investing in tokenized RWAs, it's clear that this represents a shift in the future of finance," she said. Solati viewed this development as a significant indicator of where digital assets are headed as traditional finance players move deeper into the space.

Solati noted that for this tokenization model to reach its full potential, regulatory frameworks must accommodate smoother transaction processes and avoid tax triggers at every step. Adjusting these laws could allow the RWA market to expand further, making it more appealing to investors and users.

Defining Digital Assets Clearly

In addition to tax adjustments, Solati emphasized the importance of clearly defining different types of digital assets, such as cryptocurrencies, stablecoins and DeFi tokens. She suggested clearer definitions could provide the foundation for more precise regulations, leading to better compliance and wider adoption.

Solati sees the potential for these regulatory developments to create a more organized and accessible digital asset environment. With clearer guidelines, she believes that institutions, retail investors, and everyday users will be more comfortable engaging with digital currencies.

Looking Ahead

While there are still many challenges ahead, Solati remained optimistic. She saw the upcoming legislative session as an opportunity to address the issues holding back digital asset adoption, primarily through tax reforms and clear regulations.

At her presentation at the Benzinga Future of Digital Assets event, she will highlight how regulatory adjustments can transform the space. By focusing on policy adjustments that simplify use, encourage tokenization and clarify asset classifications, Solati believes the digital asset market could become more accessible and practical, paving the way for broader adoption in the years to come.

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As the digital asset market continues to mature, the convergence of regulatory shifts, M&A activities, and adoption trends will define the future of this dynamic field. Benzinga's Future of Digital Assets event in New York City on Nov. 19 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.

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