Lawmakers aim to clarify regulatory oversight while pushing bill toward year-end approval
The US Senate has updated its crypto market structure bill, adding a provision that ensures tokenized stocks and other securities remain classified as securities even when issued on a blockchain. The update is designed to prevent regulatory confusion and preserve their alignment with existing financial systems.
Tokenized Assets Stay Within Securities Law
Under the new clause, tokenized stocks will not fall under commodities oversight, a risk that had raised concerns for firms experimenting with tokenization. By keeping them within securities law, the Senate aims to ensure compatibility with broker-dealer frameworks, clearing systems, and trading platforms.
“We want this on the president’s desk before the end of the year,” Senator Cynthia Lummis, one of the bill’s lead sponsors, told CNBC.
Dividing Oversight Between SEC and CFTC
The bill, titled the Responsible Financial Innovation Act of 2025, also outlines when digital assets should fall under the jurisdiction of the Securities and Exchange Commission (SEC) versus the Commodity Futures Trading Commission (CFTC).
Lummis said she expects the Senate Banking Committee to vote this month on SEC provisions, followed by the Agriculture Committee in October on CFTC oversight. A full Senate vote could occur as early as November.
While the draft still lacks full Democratic support, bipartisan negotiations are ongoing. Lummis noted efforts to pair lawmakers across party lines on specific issues within the legislation.
Crypto Industry Pushes for Developer Protections
Industry leaders have urged the Senate to go further. In August, 112 crypto companies, investors, and advocacy groups signed a letter calling for protections for software developers and non-custodial service providers.
The coalition, which included Coinbase, Kraken, Ripple, a16z, and Uniswap Labs, warned that misclassification risks could discourage innovation. Citing Electric Capital data, the group highlighted that the US share of open-source blockchain developers dropped from 25% in 2021 to 18% in 2025.
By clarifying the status of tokenized securities, the Senate is signaling an effort to bring certainty to crypto markets while preserving investor protections. However, the final shape of the legislation will depend on bipartisan support and whether developer safeguards are included before year-end.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.