- The US Senate updated its crypto market structure bill to clarify how tokenized assets are regulated.
- The change makes clear that tokenized stocks and similar instruments remain securities when placed on a blockchain.
- The draft bill splits oversight between the SEC and the CFTC and is called the Responsible Financial Innovation Act of 2025.
- A coalition of 112 crypto firms urged protections for developers and non-custodial providers, citing a decline in US blockchain developers.
- Senators expect committee votes this fall and hope for a full Senate vote by November.
The US Senate on Friday added a clause to its crypto market structure bill to state that stocks and other securities remain securities when tokenized on a blockchain. The change aims to avoid confusion over whether tokenized securities could be regulated as commodities.
The draft, called the Responsible Financial Innovation Act of 2025, clarifies when digital assets fall under the Securities and Exchange Commission versus the Commodity Futures Trading Commission. Wyoming Senator Cynthia Lummis, a lead sponsor, said she expects the Senate Banking Committee to vote this month on SEC-related provisions, the Agriculture Committee to vote in October on CFTC oversight, and a full Senate vote possibly in November.
Keeping tokenized stocks classified as securities confirms they stay compatible with broker-dealer rules, clearing systems and trading platforms. That distinction matters for digital asset firms working on tokenization because stocks are already regulated as securities.
Last month, a group of 112 crypto companies, investors and advocacy organizations sent a letter to the Senate Banking and Agriculture Committees urging protections for software developers and non-custodial service providers. Major participants named in the letter include Coinbase, Kraken, Ripple, a16z and Uniswap Labs.
The letter warned that outdated financial rules could misclassify developers and non-custodial providers as intermediaries. It cited data from Electric Capital showing the US share of open-source blockchain developers fell from 25% in 2021 to 18% in 2025.
Tokenization is the process of creating a digital token on a blockchain that represents ownership of an asset. Securities are financial instruments such as stocks; commodities are physical goods or raw materials. The bill aims to assign clear regulatory authority to avoid overlap.
Bipartisan negotiations are ongoing, though the draft has not yet secured full Democratic support. “We want this on the president’s desk before the end of the year,” Cynthia Lummis said.
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