Allen argued that public blockchains “can’t process large volumes of transactions” — though on-chain data suggests otherwise.
A financial law professor told Congress in a speech on Wednesday that public blockchains are too “fragile” to tokenize trillions of dollars in real-world assets as they’re highly inefficient and can’t handle large transaction volumes.
“Crypto runs on permissionless public blockchains, and tokenization does not need to,” claimed Hilary Allen, professor at the American University Washington College of Law, in a speech to the United States House Financial Services Committee (HFSC) on June 5.
Allen was one of several industry leaders who was invited to speak about the impact that tokenized RWAs can have on financial markets — where she argued that public blockchains aren’t a suitable enough infrastructure:
