The US Senate updated its crypto market structure bill, clarifying that tokenized stocks will still be classified as securities on blockchain networks. This move comes amidst a growing trend towards tokenization, ensuring compatibility with existing broker-dealer frameworks and trading platforms.

Wyoming Senator Cynthia Lummis aims to have the bill on the president’s desk before year-end. The Responsible Financial Innovation Act of 2025 seeks to define when digital assets fall under the SEC or CFTC’s jurisdiction, with committee votes expected in the coming months.

Bipartisan talks are ongoing to secure Democratic support for the bill. Efforts are being made to pair Democrats and Republicans on specific sub-issues within the legislation, with a goal to build cross-party momentum for the bill’s passage.

A coalition of 112 crypto firms, investors, and advocacy groups called for explicit protections for software developers and non-custodial service providers in the upcoming legislation. Concerns were raised about outdated financial rules wrongly classifying these actors as intermediaries, potentially driving talent overseas.

Major industry players, including Coinbase, a16z, Kraken, Ripple, and Uniswap Labs, supported the appeal for protections in the legislation. The letter highlighted a decline in the U.S. share of open-source blockchain developers and warned that regulatory uncertainty could further push talent abroad.

Read more at Yahoo Finance: US Senate Bill Proposes To Treat Tokenized Stocks As Securities