Indian MP Proposes Asset Tokenization Bill 2026

Background and Policy Push Behind the Bill

The Asset Tokenisation Bill introduced by Raghav Chadha aims to create a legal framework for converting real-world assets into blockchain-based tokens. Specifically, the proposal was presented in the Rajya Sabha to address gaps in regulation. Moreover, it focuses on enabling fractional ownership and improving liquidity. At the same time, the bill seeks to establish clear rules for issuance, trading, and custody under regulatory oversight.

The move follows growing global interest in tokenised assets and India’s evolving crypto landscape. Chadha had previously advocated for tokenisation and blockchain based property systems, making the bill largely expected in policy circles. Its introduction reflects rising demand for clearer regulations to support innovation while addressing investor protection and capital outflows.

First Legislative Move on Asset Tokenisation

The Asset Tokenisation Bill introduced by Raghav Chadha marks the first time such a framework has been formally proposed in the Rajya Sabha. No prior bill government or private has specifically addressed legal recognition and regulation of tokenised real world assets in India, making this a first of its kind legislative step.

Earlier discussions were limited to policy speeches and broader crypto proposals. For example, Chadha had called for a tokenisation framework in late 2025, but no formal legislation followed at the time. Compared to past crypto related proposals focused on restrictions, this bill takes a more enabling approach, aiming to support innovation and structured growth in digital asset markets.

Market Context From Related Policy Signals

There is no direct precedent for market reaction, as this is the first tokenisation focused bill introduced in India. However, earlier signals from Raghav Chadha provide context. His December 2025 speech calling for a tokenisation framework triggered positive sentiment across crypto communities, though it had no measurable impact on prices or trading volumes.

A broader comparison comes from the 2021 crypto bill proposal, which created fear of restrictions and led to sharp sell offs on Indian exchanges. In contrast, the current proposal takes a pro innovation approach, and early sentiment remains positive, with discussions centered on financial inclusion and growth rather than regulatory risk.

What To Watch Next For The Asset Tokenisation Bill

The immediate focus is whether the bill gains traction during the ongoing session led by Raghav Chadha. In the next 1–2 weeks, the key trigger is the Private Member’s Bill ballot, which determines if it gets priority for discussion. If selected, it could be taken up during upcoming Private Members’ Business days before April 2, 2026, when the session ends. Without a ballot slot or debate, the bill risks stalling or lapsing.

Beyond scheduling, watch for government signals and regulatory alignment. Any response from the Finance Ministry, Securities and Exchange Board of India, or Reserve Bank of India would be critical. Support or parallel policy action could accelerate momentum, while silence or opposition would likely stall progress. In the near term, narrative direction depends less on markets and more on whether this proposal transitions from a symbolic move to an actionable legislative pathway.