PANews reported on December 17th that, according to Finance Feeds, Raghav Chadha, a member of the Aam Ayutthaya Party (AAP), has formally proposed a dedicated "Tokenization Act" to modernize India's financial architecture. Speaking in the Rajya Sabha (Upper House of Parliament), Chadha pointed out the need for a tailored legal framework to leverage blockchain technology to empower real-world assets (RWAs). His proposal marks a significant shift in Indian politics, moving from simply taxing "speculative" cryptocurrency transactions to building a regulated on-chain economy that benefits the country's middle class.

The core of Chadha's legislative proposal lies in achieving "financial democratization" through fractional ownership of assets. Chadha emphasizes that asset tokenization is "one of the most transformative financial technology innovations of the 21st century." He urges the government to establish a regulatory sandbox, allowing fintech companies to experiment with tokenized products in a controlled environment overseen by Indian regulators. The bill aims to eliminate the ambiguity currently plaguing India's digital asset market by clarifying the legal definition of "tokenized assets." Chadha warns that without domestic legislation, India faces the risk of losing sovereign data and economic power, with its assets potentially being placed on foreign networks for unregulated transactions.