US Senate Bill Proposes To Treat Tokenized Stocks As Securities

Sat, Sep 6, 2025, 8:47 AM 2 min read

On Friday, September 5, the US Senate updated its crypto market structure bill with a key provision on the regulation of tokenized stocks. According to the new clause, stocks will continue to be classified as securities even after being tokenized on blockchain networks.

This eliminates the confusion about whether tokenized assets fall under the category of commodities. Interestingly, this clarification from the US Senate comes at a time of greater push towards tokenization. Tokenized stocks remain classified as securities, thereby ensuring full compatibility with existing broker-dealer frameworks, clearing systems, and trading platforms.

During her latest CNBC interview, Wyoming Senator Cynthia Lummis explained, “We want this on the president’s desk before the end of the year.”

The US Senate has introduced the Responsible Financial Innovation Act of 2025, aimed at clarifying when digital assets fall under the jurisdiction of the Securities and Exchange Commission (SEC) versus the Commodity Futures Trading Commission (CFTC).

Senator Cynthia Lummis told CNBC that the Senate Banking Committee will vote on the SEC-related provisions this month. Besides, the Agriculture Committee is set to consider the CFTC sections in October. A full Senate vote could take place as early as November.

Although the draft bill has yet to secure Democratic support, Lummis said bipartisan talks are underway. “There have been efforts to pair Democrats and Republicans on certain sub-issues within the bill,” she noted, adding that the goal is to build cross-party momentum.

In August, a coalition of 112 crypto firms, investors, and advocacy groups urged the U.S. Senate to include explicit protections for software developers and non-custodial service providers in the upcoming legislation governing the crypto market structure.

In a letter sent to the Senate Banking and Agriculture Committees, the group cautioned that outdated financial rules could wrongly classify these actors as intermediaries.

The appeal was backed by major industry players, including Coinbase, a16z, Kraken, Ripple, and Uniswap Labs. Citing Electric Capital data, the letter highlighted that the U.S. share of open-source blockchain developers has fallen from 25% in 2021 to 18% in 2025. They also warned that regulatory uncertainty is pushing talent overseas.

Read original story US Senate Bill Proposes To Treat Tokenized Stocks As Securities by Bhushan Akolkar at Coinspeaker.com