Senate lawmaker Lummis proposes cryptocurrency legislation, with tokenized securities facing potential regulatory adjustments
The Senate is making strides in settling long-standing disputes about who regulates crypto assets with the introduction of a new bill aimed at shaping the regulatory landscape for digital assets. The Responsible Financial Innovation Act of 2025, currently under review, seeks to establish a clear framework for the treatment of tokenized stocks and other digital assets.
The updated draft bill clarifies how tokenized stocks will be treated, ensuring they will not shift into commodity status if issued on blockchain rails. This clarification comes as a relief for crypto firms such as Coinbase and Ripple, who have been pushing for this clarity as they expand operations in the United States.
The Senate's actions in the coming months will determine the timeline for final approval. The Senate Agriculture Committee is set to take up the Commodity Futures Trading Commission section in October, while the Senate Banking Committee is preparing a vote this month on provisions tied to the Securities and Exchange Commission.
If passed, the bill would mark a rare bipartisan milestone in crypto regulation. At least seven Democratic senators must join Republicans for the draft to advance toward the president's desk. A floor debate could begin in November if the votes related to the section clear.
The update is meant to draw a line between crypto commodities and assets already classified as securities. Senator Cynthia Lummis of Wyoming stated that the clause reflects concerns raised by market participants. Feedback for the updated draft was considered extensively from various stakeholders, as stated by a spokesperson for the Senate Banking Committee.
President Donald Trump signed a separate stablecoin bill into law in July, giving regulators new tools for oversight. The Senate aims to complete its version of the digital asset regulation bill before the two chambers reconcile differences.
It's worth noting that there are no search results indicating which Democratic Party senators have publicly supported the Financial Innovation Act of 2025 in the Senate chamber. The updated draft reflects input from hundreds of stakeholders, including financial institutions, blockchain firms, and consumer groups.
Once passed, the bill would shape long-term compliance and reporting requirements across crypto markets, providing much-needed clarity for businesses operating in this rapidly evolving sector. The Senate's refined plan for digital asset regulation is a significant step forward in establishing a comprehensive regulatory framework for the crypto industry in the United States.
