- Senate’s crypto bill ensures tokenized stocks remain securities, clarifying the regulation.
- U.S. Senate crypto bill clarifies SEC and CFTC roles, with votes expected later this year.
- New bill protects developers and DeFi platforms, fostering innovation in the crypto space.
The U.S. Senate’s strategy to clarify its framework on the crypto market structure has taken a key step in regulating digital assets. One of the amendments to the bill confirms that tokenized stocks will remain classified as securities, preserving their compatibility with existing financial systems. This revision is essential to digital asset companies that tokenize stocks and other securities to ensure they remain subject to the jurisdiction of securities regulators rather than commodities.
Tokenized Stocks to Stay Under Securities Regulation
The amendment added to the crypto bill by the Senate ensures that tokenized stocks and other types of tokenized securities are regulated equally with traditional stocks. This classification avoids confusion about whether these digital assets should be considered commodities. Consequently, tokenized stocks will still be compatible with the current structure of using broker-dealer services, trading platforms, and clearing systems.
The decision is especially relevant for firms engaged in tokenization, which involves converting traditional securities into digital tokens on blockchain networks. These tokens represent ownership of assets, such as stocks or bonds, but are tradable as digital assets. Under the new clause, tokenized stocks will retain their regulatory classification as securities, which guarantees their continued compatibility with existing financial infrastructures.
Senator Cynthia Lummis, a lead sponsor of the bill, expressed her intention to have the crypto bill passed before the end of the year. In an interview with CNBC, Lummis stated, “We want this on the president’s desk before the end of the year,” underlining the urgency to complete the legislative process.
Senate to Vote on Crypto Bill as Key Provisions Progress
The new bill, the Responsible Financial Innovation Act of 2025, is progressing through the legislative process—some of the key provisions concern how digital assets will be regulated. One of the most important provisions is the definition of differences between the two authorities, the SEC and the CFTC.
The bill’s passage will create a more defined regulatory structure by determining when digital assets should be overseen by the SEC or the CFTC. Senator Lummis indicated that the Senate Banking Committee would vote on the SEC provisions by the end of the month, with the Senate Agriculture Committee set to review the CFTC-related sections in October. A full Senate vote on the bill could occur as early as November.
However, the Senate Democrats do not support the bill, which could prevent its passage. Lummis is hopeful of bipartisan talks and says negotiations are in progress to ensure the parties work together. The House and Senate will then have to approve the final version of the bill, which would then be sent to President Trump to sign into law.
Related: SEC & CFTC Propose 24/7 Crypto Trading for U.S. Markets
Protections for Developers and Innovations in DeFi
The other issue covered by the bill concerns developers and decentralized finance (DeFi) platforms. In the previous month, more than 100 crypto companies, including some of the largest, such as Coinbase and Kraken, called on the Senate to add amendments to cover software developers and non-custodial service providers. Such companies raised objections to the old financial regulations, which would jeopardize the classification of developers as intermediaries.
The new provision states that blockchain technology developers will not be considered as money transmitters just by writing or publishing code. The exemptions will also be extended to DeFi platforms to avoid regulatory obligations similar to those of centralized financial institutions. This is done to encourage innovation as it safeguards programmers and supports new blockchain-based services, without being disrupted by financial regulations.
