The US Senate has updated its crypto market structure bill with a new clause that confirms tokenised stocks and similar assets will remain classified as securities. The move is designed to avoid confusion in regulatory treatment and to ensure tokenisation fits smoothly within existing financial systems.
The provision comes as lawmakers push to finalise the Responsible Financial Innovation Act of 2025, a wide-ranging effort to set clearer rules for digital assets.
Tokenised Stocks Stay Within Securities Law
Under the latest draft, any stocks or securities that are tokenised on a blockchain will continue to be regulated as securities. This clarification eliminates uncertainty over whether they could fall under commodities oversight, a concern for digital asset firms developing tokenisation products.
The classification matters because broker-dealers, clearing houses and trading platforms already operate under securities law. By keeping tokenised assets within this framework, the legislation maintains compatibility with existing market infrastructure.
Wyoming Senator Cynthia Lummis, one of the bill’s lead sponsors, emphasised the urgency of the measure. “We want this on the president’s desk before the end of the year,” she told CNBC.
SEC and CFTC Oversight Split
Beyond tokenisation, the bill sets out how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will divide responsibility for digital assets.
The Senate Banking Committee is expected to review and vote this month on the SEC-related provisions, while the Agriculture Committee will address CFTC oversight in October. A full Senate vote could come as early as November, though bipartisan negotiations remain ongoing.
Senator Lummis said that discussions are underway to bring Democratic lawmakers on board. “There have been efforts to pair Democrats and Republicans on certain sub-issues within the bill,” she explained, signalling hopes for cross-party support.
Industry Calls for Developer Protections
The legislative process is unfolding against a backdrop of pressure from the crypto industry. In August, more than 100 companies, investors and advocacy groups including Coinbase, Kraken, Ripple, a16z and Uniswap Labs urged the Senate to ensure protections for software developers and non-custodial service providers.
In a letter to both the Banking and Agriculture Committees, the coalition warned that without explicit safeguards, outdated financial rules could wrongly classify developers as intermediaries. This, they argued, would stifle innovation and increase legal risk.
Citing research by Electric Capital, the group noted that the US share of open-source blockchain developers has already dropped from 25% in 2021 to 18% in 2025. The decline highlights how regulatory uncertainty is pushing talent and projects overseas.
Path to a Landmark Crypto Framework
The Responsible Financial Innovation Act of 2025 is seen as one of the most comprehensive attempts yet to bring order to America’s fragmented crypto regulatory environment. By clarifying how digital asset including tokenised stocks are categorised and who oversees them, lawmakers aim to provide the certainty needed for mainstream adoption.
However, significant hurdles remain. While Republicans have largely backed the bill, Democratic support is still being negotiated and industry groups are lobbying for additional protections.
If passed, the legislation would cement securities law as the foundation for tokenised assets, while carving out a clearer role for the CFTC in overseeing digital commodities. For both regulators and the industry, it could mark a turning point in how crypto and traditional finance converge.
