Senate Crypto Bill Clarifies Tokenized Stocks Remain Securities

Senate crypto bill adds clause to keep tokenized stocks as securities

The US Senate has added a provision to its crypto bill confirming that tokenized stocks remain securities, preserving their fit within existing financial frameworks.

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Senate crypto bill adds clause to keep tokenized stocks as securities

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The US Senate updated its crypto market structure bill on Friday, adding a key provision to clarify how tokenized assets are regulated.

The new clause would ensure that stocks and other securities remain classified as securities when tokenized on a blockchain, avoiding potential confusion over whether they should fall under commodities regulation.

The distinction is important for digital asset firms working on tokenization. Stocks are already regulated as securities. When tokenized, keeping them as securities confirms they stay compatible with broker-dealer frameworks, clearing systems and trading platforms.

“We want this on the president’s desk before the end of the year,” Wyoming Senator Cynthia Lummis, a lead sponsor of the legislation, players like Coinbase, Kraken, Ripple, a16z and Uniswap Labs joined the call, arguing that regulatory uncertainty is already driving developers away. Citing data from Electric Capital, the letter noted that the US share of open-source blockchain developers dropped from 25% in 2021 to 18% in 2025.

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