The US Senate updated its crypto market structure bill to include a clause on tokenized stocks. Lawmakers confirmed that tokenized stocks remain classified as securities, even when moved onto a blockchain. This ensures they stay within the existing financial system.
The clause removes any confusion over whether tokenized stocks could fall under commodities rules. Stocks already sit under securities law, and the update confirms that this remains unchanged after tokenization. This alignment matters for financial firms developing tokenization platforms.
Keeping tokenized stocks as securities also keeps them compatible with broker-dealer frameworks, clearing systems, and trading platforms. Senator Cynthia Lummis, one of the bill’s sponsors, told CNBC,
“We want this on the president’s desk before the end of the year.”
Responsible Financial Innovation Act Splits Oversight
The crypto bill is called the Responsible Financial Innovation Act of 2025. It defines how oversight splits between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This split addresses who regulates specific types of digital assets.
According to Lummis, the Senate Banking Committee will vote on the SEC-related provisions this month. The Agriculture Committee will vote in October on provisions tied to the CFTC. A full Senate vote could take place as early as November.
The draft does not yet have Democratic support. Bipartisan talks are ongoing, and Lummis confirmed that efforts are underway to connect lawmakers across parties on key sub-issues. The bill’s progress depends on those negotiations.
Crypto Firms Call for Developer Protections
A group of 112 crypto companies, investors, and advocacy groups sent a letter to the Senate asking for protections in the bill. They urged lawmakers to protect software developers and non-custodial service providers in the final draft.
The letter went to both the Senate Banking Committee and the Agriculture Committee. It warned that outdated financial rules could wrongly classify developers as intermediaries. The group argued that this misclassification creates risks for those building crypto services.
The signatories included Coinbase, Kraken, Ripple, a16z, and Uniswap Labs. The letter cited Electric Capitaldata showing the US share of open-source blockchain developers dropped from 25% in 2021 to 18% in 2025. The data points to a shrinking developer base in the US linked to ongoing regulatory uncertainty.
