US Senate Updates Crypto Bill to Classify Tokenized Stocks as Securities
The US Senate updated its crypto market structure bill on September 5, introducing a provision that classifies tokenized stocks as securities, even when represented on blockchain networks. This decision clarifies the regulatory status of tokenized assets, aligning them with existing broker-dealer frameworks and trading platforms.
Details of the Bill
- The Responsible Financial Innovation Act of 2025 aims to define the jurisdictions of the SEC and CFTC regarding digital assets.
- The Senate Banking Committee will vote on SEC-related provisions this month.
- The Agriculture Committee will review CFTC sections in October.
- A full Senate vote may occur in November.
- Bipartisan discussions are ongoing, though Democratic support is not yet secured.
Industry Concerns
- A coalition of 112 crypto firms urged for protections for software developers and non-custodial service providers in the upcoming legislation.
- The letter warned against outdated rules misclassifying these entities as intermediaries.
- Notable supporters include Coinbase, a16z, Kraken, Ripple, and Uniswap Labs.
- Data from Electric Capital shows the U.S. share of open-source blockchain developers declined from 25% in 2021 to 18% in 2025, prompting concerns over talent migration abroad.