Important Highlights
- Tokenized stocks (rather than commodities) will continue to be regarded as securities.
- The Crypto Bill divides the SEC and CFTC’s regulatory responsibilities.
- By the year’s end, lawmakers hope to have the bill passed.
Crypto Bill Clears the Air on Tokenized Stocks
The U.S. Senate just added a new clause to the Crypto Bill, and it’s a big one: tokenized stocks will continue to be treated as securities, even if they live on a blockchain.
This change might sound technical, but it matters. Simply put, it indicates that a stock’s identity remains unchanged simply because it is converted to a digital token. It still operates under the same regulations and is still a stock.
Why is this important? Because without this clarification, there was growing concern that tokenized stocks might be reclassified as commodities.
That would’ve caused a lot of confusion around who’s in charge, especially for crypto companies building platforms around these digital assets.
There is no question now. Even if it is tokenized, it is still a stock if it behaves like one.
Crypto Bill Lays Out Who Regulates What
Another important feature of the Crypto Bill is the division of regulatory duties between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
Here’s the breakdown:
- The SEC will oversee digital assets that are clearly investment contracts (like tokenized stocks).
- The CFTC will take charge of crypto assets that behave more like commodities (such as Bitcoin or Ether).
This approach aims to avoid regulatory turf wars and more importantly, give companies and developers a clear path forward.
Senator Cynthia Lummis, one of the bill’s main sponsors, says they’re aiming to get the final version of the bill passed and on the president’s desk by the end of the year.
The Banking Committee will vote on the SEC parts soon, and the Agriculture Committee will follow in October for the CFTC side. A full Senate vote could happen as early as November.
Why the Crypto Industry Cares So Much
For people building in the crypto space, this bill is a big deal. Up until now, there’s been a lot of legal gray area. Developers and founders often don’t know if their project falls under securities laws or commodities rules or both.
That uncertainty slows down innovation. It makes companies nervous, and it even pushes some developers out of the U.S. entirely.
This update to the Crypto Bill gives them some much-needed clarity especially for those working with tokenized versions of stocks and bonds.
They now know they’re still playing by SEC rules, which means they can design platforms that fit neatly into existing financial systems.
Developers Want More Protections, Too
While the updated Crypto Bill is a step in the right direction, the crypto community says it doesn’t go far enough especially when it comes to protecting developers.
A letter urging Congress to take further action was signed last month by over 100 businesses, including well-known startups like Coinbase, Uniswap, and a16z.
They want to ensure that non-custodial services, such as wallets, and software developers are not regarded unfairly as financial intermediaries.
They’re worried that vague rules could scare off the very people building the future of crypto.
The number of U.S. based open source blockchain developers, according to data from Electric Capital. has already dropped from 25% of the global total in 2021 to just 18% in 2025.
That’s a red flag. And crypto leaders say better legal protection is part of the solution.
Regulators Back the Clarity
Even within the SEC, some leaders agree with the direction of the Crypto Bill. Commissioner Hester Peirce, known for her pro-crypto stance, put it simply:
“Tokenized securities are still securities. Blockchain doesn’t magically change that.”
Her point? Technology might evolve fast, but the core definitions of financial assets don’t. That kind of regulatory consistency is exactly what developers, exchanges, and investors have been asking for.
