TLDR
- Senate updates crypto market structure bill to clarify treatment of tokenized securities.
- Senate Banking and Agriculture Committees expected to vote on bill portions in October.
- The Senate’s crypto bill aims for bipartisan support to secure passage before year-end.
- Lummis confident that the crypto market structure bill will reach the president this year.
The U.S. Senate is moving closer to finalizing its version of the crypto market structure bill. The bill, which aims to provide clearer regulatory oversight for crypto and digital assets, has recently been updated. A new provision ensures that tokenized stocks and securities will not be treated as commodities if they are digitalized.
The bill’s progress comes as part of the broader effort to establish clearer guidelines for when digital assets will be classified as securities or commodities.
Senate’s Efforts to Advance Crypto Legislation
The Senate has been working on the Responsible Financial Innovation Act of 2025, a comprehensive piece of legislation aimed at addressing crypto regulation. One of the key updates to the bill is a provision designed to clarify how tokenized stocks and securities are treated under the law. This update is seen as a significant step toward providing clarity to the market, especially for firms like Coinbase and Ripple, which have been closely watching the bill’s progress.
Senator Cynthia Lummis, a key figure behind the legislation, expressed confidence that the bill will make its way to President Trump’s desk before the year’s end. While the House passed its version of the bill in July, the Senate’s version still requires further approval and adjustments. A final version will need to combine the House and Senate bills before it is sent to the president for signing.
Timeline for Votes and Committee Actions
Senator Lummis indicated that votes on key portions of the bill are expected soon. The Senate Banking Committee is anticipated to vote on the section dealing with the Securities and Exchange Commission (SEC) by the end of the month. Meanwhile, the Senate Agriculture Committee is expected to vote on the parts related to the Commodity Futures Trading Commission (CFTC) in October. A full Senate vote could happen as soon as November, according to Lummis.
Despite the Senate’s progress, the bill still faces hurdles in gaining full support from Senate Democrats. However, bipartisan discussions are ongoing, and Lummis has indicated efforts to pair both parties on certain issues within the bill. To ensure the bill passes, at least seven Democratic senators would need to join Republicans in support of the measure.
The Need for Bipartisan Support
The draft of the bill has yet to garner widespread backing from Senate Democrats. However, Lummis pointed to ongoing efforts to address concerns from both parties. She noted that bipartisan support on key issues is crucial to passing the bill. If all Republicans vote in favor, the bill will still need at least seven Democratic votes to succeed in the Senate.
A spokesperson for the Senate Banking Committee confirmed that the draft incorporates feedback from hundreds of stakeholders. This includes input on a range of questions regarding crypto regulation, further demonstrating the thoroughness of the process.
