Senate Aims to Solve Crypto’s Regulatory Crossroads

The Senate is advancing a revised version of the Responsible Financial Innovation Act of 2025, a landmark piece of legislation aimed at reshaping the regulatory landscape for digital assets. The bill, currently being developed by the Senate Banking Committee, introduces key provisions to clarify how tokenized securities, non-fungible tokens (NFTs), and digital commodities will be governed. A central focus of the revised draft is to prevent tokenized stocks and other securities from being classified as commodities, a move that aligns with industry demands for clearer regulatory boundaries [1].

The updated bill introduces a provision titled “protecting software developers and software innovation,” which excludes certain actors, including validators, from securities law and anti-money laundering compliance requirements. It also explicitly states that the offering, selling, or transferring of an NFT does not constitute a securities offering or investment contract, a provision absent from the House’s CLARITY Act [2]. The Senate’s version emphasizes collaboration between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), requiring both agencies to issue joint rules to define and regulate digital commodities [2].

Sen. Cynthia Lummis (R-Wyo.), a key architect of the bill, has stated that the Senate Banking Committee is expected to vote on the SEC-related provisions this month, while the Senate Agriculture Committee will handle the CFTC provisions in October. A full Senate vote could occur as soon as November, with the goal of getting the bill to President Donald Trump’s desk by Thanksgiving. Lummis underscored that bipartisan discussions are already underway to ensure broad agreement on key provisions [1].

The House passed the CLARITY Act in July, which received support from 78 Democrats. However, the Senate’s version of the bill remains to be evaluated by Democratic lawmakers. Lummis noted that even if all Republicans back the measure, at least seven Democrats will need to join them to secure passage. Senate Democrats have expressed concerns about the timeline, with Sen. Mark Warner (D-Va.) warning that accelerating the markup process could hinder the chances of a bipartisan outcome [2].

The evolving regulatory environment is supported by recent actions from the SEC and CFTC. In a joint statement, SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham emphasized the importance of harmonizing regulatory approaches to avoid stifling innovation. This collaborative effort follows the release of another joint statement clarifying that exchanges registered with either agency can facilitate the trading of spot commodity products on digital assets. These statements signal a shift toward a more coordinated and industry-friendly approach to crypto regulation [2].

As the Senate finalizes its version of the bill, stakeholders remain focused on ensuring that the final text balances regulatory clarity with innovation. The bill’s success will depend on its ability to unify the Senate and House versions into a single framework, a process that lawmakers anticipate beginning shortly. With the crypto industry awaiting clear regulatory guidelines, the Responsible Financial Innovation Act of 2025 could mark a pivotal step toward establishing a stable and predictable legal environment for digital assets in the United States.

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)