Carlos Domingo, co-founder and CEO of the real-world asset tokenization firm Securitize, testified at a House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion hearing Wednesday morning, urging for clearer digital asset regulation and expanded privileges for special purpose broker-dealers (SPBDs) dealing with digital assets to keep the United States from falling behind Europe.

Domingo first said that lawmakers must provide clearer definitions for digital assets and tokenized securities to differentiate them from other digital assets.

"This lack of clarity is today impeding regulators to really understand the unique characteristics of compliant tokenized securities and to regulate them accordingly," he said.

As for SPBDs, Domingo said their framework …