Senate Crypto Bill: Tokenized Stocks Still Securities
Senate Crypto Bill Clarifies Tokenized Stocks Remain Securities
The U.S. Senate has updated its crypto market structure bill, adding a provision clarifying the regulatory status of tokenized assets. This amendment aims to ensure that stocks and other securities retain their classification as securities even when tokenized on a blockchain.
The distinction is crucial for digital asset firms involved in tokenization. Stocks are already regulated as securities, and maintaining this classification post-tokenization ensures compatibility with existing broker-dealer frameworks, clearing systems, and trading platforms.
“We want this on the president’s desk before the end of the year,” Wyoming Senator Cynthia Lummis, a key sponsor of the legislation, stated in a CNBC interview.
Bill Divides Oversight Between SEC and CFTC
The Responsible Financial Innovation Act of 2025 seeks to clarify the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing digital assets.
Senator Lummis anticipates a Senate Banking Committee vote on the SEC-related provisions this month, followed by an Agriculture Committee vote on CFTC oversight in October. A full Senate vote could occur as early as November.
While bipartisan support is still being sought, negotiations are underway. Lummis noted efforts to pair Democrats and Republicans on specific sub-issues within the bill, fostering cross-party collaboration.
Industry Urges Senate to Protect Developers
Last month, a coalition of 112 crypto companies, investors, and advocacy organizations urged the Senate to include protections for software developers and non-custodial service providers in the crypto market structure bill.
In a letter to the Senate Banking and Agriculture Committees, the coalition cautioned against misclassifying these actors as intermediaries under existing financial rules.
Key players like Coinbase, Kraken, Ripple, a16z, and Uniswap Labs have joined this call, highlighting that regulatory uncertainty is driving developers away. Data from Electric Capital indicates that the US share of open-source blockchain developers has declined from 25% in 2021 to 18% in 2025.