Ava Labs CEO Defends Blockchain Technology: 'Tokenization Was Not Created to Evade Laws'

Ava Labs CEO Emin Gün Sirer is set to testify before the U.S. House Financial Services Committee, offering a staunch defence of blockchain technology and its transformative potential. As the regulatory landscape tightens, particularly with the recent actions against major crypto exchanges Binance and Coinbase, Sirer will call for sensible, clear regulations that support the responsible growth of blockchain innovations.
Tokenization: A Key Innovation, Not a Loophole
A central theme of Sirer’s testimony will be the tokenization of real-world assets - essentially, their digital representation on blockchain networks. Far from being a tool to skirt the law, Sirer asserts that tokenization is a natural evolution of blockchain technology, much like computer databases improved upon paper filing systems.
“Tokenization was not created to evade laws. It is a natural product of blockchain technology and an improvement over traditional systems,” Sirer wrote in his prepared remarks. He emphasised that blockchain builders did not develop this technology to bypass regulations, but to solve genuine technical challenges and create more efficient systems.
At its core, blockchain solves one of the most complex problems in computer science: achieving consensus across a diverse and distributed set of computers. According to Sirer, this consensus mechanism is a foundational building block that enables the creation of unique digital assets, tracks their ownership, and securely executes processes that traditional internet systems often struggle with.
The Power of Distributed Networks
Sirer, a Turkish-American computer scientist and co-developer of the Bitcoin scaling solution Bitcoin-NG, believes that decentralized networks offer numerous benefits that extend far beyond regulatory debates. He argues that distributed networks are inherently more resilient, secure, and transparent, making them ideal for builders and innovators.
“Blockchains are crucial in a digitally-native world,” Sirer is expected to say. As the world continues its rapid march towards digital transformation, he will argue that blockchain technology is key to managing this shift, particularly as artificial intelligence and other emerging technologies take center stage.
A Response to the SEC’s Crackdown
Sirer’s testimony comes on the heels of significant enforcement actions by the U.S. Securities and Exchange Commission (SEC). Last week, the SEC targeted both Binance and Coinbase, alleging that the exchanges had been offering unregistered securities. The assets in question include prominent tokens like Solana (SOL), Polygon (MATIC), and Cardano (ADA), among others.
While regulators are sharpening their focus on the crypto industry, Sirer will argue that blockchain’s potential goes far beyond securities laws. In his view, the ability to leverage decentralized networks is a desirable goal for many industries, from finance and commerce to recreation and communications. These networks provide benefits that have little to do with financial regulation, offering new possibilities for innovation and development in a range of fields.
Advocating for Responsible Innovation
Sirer’s appearance before the House Financial Services Committee will be part of a broader discussion on blockchain technology’s future in the U.S. He will be joined by other key figures, including Circle CEO Jeremy Allaire and legal experts from Steptoe & Johnson, who will also testify.
Sirer’s message is clear: the U.S. must create an environment that supports free, safe, and responsible blockchain innovation. He will emphasize the need for thoughtful regulations that protect consumers while allowing these groundbreaking technologies to flourish.
As blockchain continues to evolve, Sirer remains optimistic about its role in shaping the future. In his view, blockchains will be crucial in creating a more digitally-native world, where decentralized networks, tokenization, and artificial intelligence all play a significant role in building the systems of tomorrow.