The main barrier to the adoption of real-world assets (RWAs) in crypto has been regulatory engagement rather than technology. Ashley Ebersole, formerly of the SEC, noted that after the 2017 DAO Report, the SEC emphasized enforcement over dialogue, making it difficult for firms to create compliant RWA products. With limited agency engagement, legal uncertainty delayed the development of onchain securities models. This is now shifting as the SEC signals more openness to industry collaboration, partly due to recent leadership changes. The market for tokenized RWAs, such as equities and funds, is growing rapidly, with projections reaching $2 trillion by 2028. Large institutions like BlackRock and JPMorgan are investing in tokenization. Compliant RWA products can mirror existing structures (e.g., stock tokens similar to depository receipts, granting real ownership and rights), but some products merely offer price exposure and not true shareholder benefits. However, regulatory challenges persist: securities rules are location-bound, so a compliant US model may not fit EU or Asian frameworks, leading platforms to offer region-specific products. Yield remains a regulatory flashpoint; passive yield is often classified as a security. While the SEC remains cautious, increased engagement offers hope for more practical, compliant RWA solutions.

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