TLDR:
- Senate crypto bill adds a clause ensuring tokenized stocks remain securities, clarifying regulatory lines for digital assets.
- Lawmakers push to finalize a market structure framework by year’s end, with Lummis urging swift Senate action.
- Separate votes are planned in Senate Banking and Agriculture Committees, splitting SEC and CFTC oversight issues.
- At least seven Democratic senators must join Republicans for the draft to advance toward the president’s desk.
The Senate is refining its plan for digital asset regulation. Lawmakers updated the draft bill on Friday, adding a clause that clarifies how tokenized stocks will be treated.
The change states that securities will not shift into commodity status if issued on blockchain rails. Senators want the final bill on the president’s desk by year’s end. Pressure is rising as the House has already advanced its version.
Crypto Bill Targets Tokenized Securities
Senator Cynthia Lummis of Wyoming told CNBC that the clause reflects concerns raised by market participants. She explained that the update was meant to draw a line between crypto commodities and assets already classified as securities. The clarification ensures stocks and similar products will not be rebranded under commodity law once tokenized.
This move follows the House’s earlier approval of its market structure legislation in July. That version also seeks to settle long-running disputes about who regulates crypto assets. The Senate now aims to complete its version before the two chambers reconcile differences.
According to Lummis, the Senate Banking Committee is preparing a vote this month on provisions tied to the Securities and Exchange Commission.
The Senate Agriculture Committee will take up the Commodity Futures Trading Commission section in October. Once those votes clear, a floor debate could begin in November.
The draft still lacks Democratic backing, but bipartisan talks are ongoing. Lummis said that Republicans and Democrats are working in pairs on specific issues to bridge divides. Even if all Republican senators support the bill, at least seven Democrats must join to secure passage.
Path Toward a Final Market Structure Law
The draft under review is called the Responsible Financial Innovation Act of 2025. It builds the regulatory framework that will determine when a digital asset is treated as a security or a commodity.
Crypto firms such as Coinbase and Ripple have pushed for this clarity as they expand operations in the United States.
In July, President Donald Trump signed a separate stablecoin bill into law, giving regulators new tools for oversight. The market structure bill, however, is considered a broader prize for industry players. It would shape long-term compliance and reporting requirements across crypto markets.
A spokesperson for the Senate Banking Committee said the updated draft reflects input from hundreds of stakeholders. That statement, shared with reporters, emphasized that feedback was considered from financial institutions, blockchain firms, and consumer groups.
If passed, the bill would mark a rare bipartisan milestone in crypto regulation. With the House already advancing its version, the Senate’s actions in the coming months will determine the timeline for final approval.
