The US Senate updated its crypto market structure bill, clarifying how tokenized assets are regulated to avoid confusion. Stocks and other securities will remain classified as securities when tokenized on a blockchain. Wyoming Senator Cynthia Lummis aims to have the bill on the president’s desk by the end of the year.

The Senate’s Responsible Financial Innovation Act of 2025 splits oversight between the SEC and CFTC for digital assets regulation. The bill clarifies which agency should oversee different types of digital assets. Bipartisan negotiations are ongoing to secure Democratic backing for the bill, with hopes for a full Senate vote in November.

Crypto firms are urging the Senate to protect software developers and non-custodial service providers in the upcoming legislation. A coalition of 112 crypto companies and organizations warned that outdated rules could misclassify these actors. Major players like Coinbase and Ripple argue that regulatory uncertainty is driving developers away, citing a drop in US blockchain developers from 25% to 18% from 2021 to 2025.

Read more at Cointelegraph: Senate Crypto Bill Clarifies Tokenized Stocks Remain Securities