Senators have released updates to the crypto legislation, detailing the legal status of tokenized securities and their integration with existing financial systems.
Key Changes to the Bill
The updated legislation clarifies that stocks and similar instruments maintain their legal classification when issued on a blockchain. This is important for companies involved in tokenization, as it allows tokenized equities to remain within existing trading and clearing frameworks while avoiding legal ambiguities.
Bill Objectives and Timeline
Senator Cynthia Lummis from Wyoming, a co-author of the bill, stated that she wants it to land on the president's desk before 2026 begins. Senate committees are expected to split the review over the next two months: the Banking Committee will handle provisions related to the Securities and Exchange Commission (SEC), while the Agriculture Committee will consider oversight from the Commodity Futures Trading Commission (CFTC). If everything proceeds on schedule, a full Senate vote could occur in November.
Industry Requests: A Push for Clarity
Even as lawmakers debate, industry leaders are pressing for additional safeguards. Last month, a coalition of over 100 firms including Coinbase, Ripple, and Kraken urged senators to explicitly protect software developers and non-custodial service providers. They argue that outdated rules risk treating coders as financial intermediaries, which could stifle innovation in the U.S.
Discussions surrounding the tokenization bill remain relevant as the industry seeks clarity in regulations and protection of its interests, which experts argue is vital for the future of the country's financial infrastructure.
