The US Senate has updated its crypto market structure bill, clarifying the regulatory status of tokenized assets. A new provision added to the bill cements tokenized stocks as securities, ensuring they remain under the existing financial frameworks of broker-dealers, clearing systems, and trading platforms.
Senate’s Move to Streamline Tokenization Regulation
The provision, a key part of the Responsible Financial Innovation Act of 2025, explicitly states that stocks, even when tokenized on blockchain, retain their classification as securities. This ensures consistency within regulatory frameworks and avoids potential confusion over whether these assets fall under commodities oversight instead.
Wyoming Senator Cynthia Lummis, one of the key sponsors of the legislation, emphasized the importance of this update. In a recent interview with CNBC, she revealed that the intention is to bring the bill to the president’s desk by the end of 2025. Lummis outlined the upcoming steps, including Senate Banking Committee and Agriculture Committee votes, which are expected to progress this month and in October, respectively.
Cross-Party Negotiations Underway
Despite the lack of full Democratic support, bipartisan talks are ongoing. “Efforts to pair Democrats and Republicans on sub-issues have been vital to progress,” noted Lummis. The bill aims to clearly delineate regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), thereby reducing overlaps and regulatory uncertainty.
The clear classification of tokenized stocks as securities is a crucial step for digital asset firms focusing on tokenization. By maintaining alignment with existing financial structures, the decision ensures smoother integration into trading platforms, clearinghouses, and broker-dealer systems.
Industry Pushback on Outdated Financial Rules
In recent weeks, the Senate faced mounting pressure from over 100 crypto companies, investors, and advocacy groups to address regulatory concerns. Organizations such as Coinbase, Kraken, Ripple, and a16z have been vocal about the risks associated with unclear financial rules. Their primary concern is the misclassification of software developers and non-custodial service providers as intermediaries, which could stifle innovation and push away talent.
A letter from the coalition highlighted concerning data from Electric Capital, which showed the U.S. share of open-source blockchain developers declining from 25% in 2021 to 18% in 2025. This decline underlines the urgency of streamlining regulations to retain technological leadership in blockchain and digital assets.
Looking Ahead for Crypto Market Structure Reform
The Responsible Financial Innovation Act of 2025 is a pivotal piece of legislation that seeks to provide clarity to crypto businesses operating in the U.S. While challenges remain, the step to classify tokenized stocks as securities is seen as a major victory for regulatory compatibility and investor confidence.
For those entering or investing in the crypto space, navigating regulatory frameworks is essential. Interested in staying updated with the latest trends and tools to simplify crypto investment? Consider exploring products like the Ledger Nano X, a hardware wallet designed for secure crypto asset management.
