US Senate Updates Crypto Bill to Limit Tokenized Stocks as Commodities

The U.S. Senate is advancing the Responsible Financial Innovation Act of 2025, a key piece of legislation aimed at clarifying crypto regulation by defining when digital assets are securities or commodities. Spearheaded by Senator Cynthia Lummis, the bill includes a new provision to prevent tokenized stocks from being classified as commodities, which is critical for companies like Coinbase and Ripple. The Senate Banking Committee is expected to vote soon on the Securities and Exchange Commission-related aspects, with the Agriculture Committee to vote later on Commodity Futures Trading Commission issues, aiming for a potential floor vote by November. The bill also provides legal protections for developers of decentralized technologies and bankruptcy treatment clarifications for digital assets, though it faces opposition from Senate Democrats, including Senator Elizabeth Warren, over concerns about reduced SEC oversight and investor risks. Additionally, the draft excludes staking, airdrops, and Decentralized Physical Infrastructure Networks from securities classification, offering clearer regulatory guidance to the crypto industry. Bipartisan discussions are ongoing to secure enough support for passage before President Donald Trump’s anticipated signing.