Ethereum News Today: Clarity Quest: Senate Maps Out Who Regulates Digital Assets

The U.S. Senate is advancing legislation to clarify regulatory oversight for tokenized stocks, aiming to ensure they remain classified as securities rather than commodities. The updated version of the Responsible Financial Innovation Act of 2025, introduced by the Senate Banking Committee, includes key provisions that reflect the evolving landscape of digital asset regulation. A central focus of the bill is to establish a clear legal framework distinguishing when digital assets—particularly tokenized securities—fall under the jurisdiction of the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). The bill seeks to address ambiguities that have long hindered the development of tokenized financial instruments, providing clarity for both market participants and regulators.

Under the proposed legislation, the SEC and CFTC are required to collaborate on issuing joint regulations to define and oversee digital commodities. The Senate version of the bill also distinguishes itself from the House’s CLARITY Act by including provisions to protect software developers and exclude validators from anti-money laundering and anti-fraud compliance requirements. Additionally, the bill explicitly states that the offering, selling, or transferring of non-fungible tokens (NFTs) does not constitute a securities offering or investment contract, aligning with industry demands for clearer regulatory boundaries.

Bipartisan discussions are ongoing to secure sufficient support for the bill, as a majority of Senate Democrats have yet to endorse the draft. Sen. Cynthia Lummis (R-Wyo.) has emphasized that efforts are being made to pair Republicans with moderate Democrats on sub-issues to build consensus. The Senate Banking Committee is expected to vote on the SEC-related components of the bill this month, while the Senate Agriculture Committee will address the CFTC’s role in October. A floor vote could occur as early as November, with Lummis expressing a desire to have the legislation on President Donald Trump’s desk by Thanksgiving.

The push for clearer regulations is also supported by recent developments at the SEC and CFTC. In a joint statement, SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham affirmed their commitment to modernizing regulations without stifling innovation. They emphasized the importance of regulatory collaboration to foster a competitive and transparent market environment. This marks a significant shift in tone, as both agencies have previously issued separate statements with differing approaches to digital asset oversight.

Industry stakeholders, including major crypto firms like Coinbase and Ripple, have long advocated for a unified regulatory approach to facilitate tokenization and broader adoption of blockchain-based financial instruments. The Senate’s progress on the market structure bill could help bridge the regulatory gap with the House’s CLARITY Act, which passed in July with 78 Democratic votes. The finalization of a cohesive legislative framework will be critical in determining the future of tokenized securities and the broader digital asset ecosystem in the U.S.

Source: [1] Senate seeks to rein in stock tokenization in latest crypto bill (https://www.cnbc.com/2025/09/05/senate-stock-tokenization-crypto-bill.html) [2] Senate Banking Committee finalizes updated market structure bill (https://blockworks.co/news/senate-crypto-market-structure-bill) [3] Public Stocks on Public Blockchains: How Do We Get There? (https://www.paradigm.xyz/2025/09/public-stocks-on-public-blockchains) [4] Tokenized U.S. Stocks on Ethereum RWA Empower Global Financial Access (https://thecurrencyanalytics.com/altcoins/tokenized-u-s-stocks-on-ethereum-usher-in-global-financial-access-194870) [5] Ondo Finance launches tokenized US stocks on Ethereum (https://blockworks.co/news/tokenized-stocks-on-ethereum)