Senate Crypto Bill Bars Tokenized Stocks from Commodity Status
Senate Banking and Agriculture Committees aim to finalize the Responsible Financial Innovation Act by November. A new clause in the crypto bill specifies that tokenized stocks on blockchain cannot be classified as commodities, clarifying crypto regulation for DeFi firms. Senator Cynthia Lummis said the Senate wants the bill on President Trump’s desk by year-end. Meanwhile, Galaxy Digital launched tokenized GLXY shares on Superstate’s Opening Bell platform, enabling onchain trading of SEC-registered equity with KYC and DeFi liquidity. The bill now awaits committee votes, needing bipartisan support to merge with the House version. Traders should note this crypto regulation update as it shapes the legal status of tokenized stocks and could influence tokenization projects and market structure.
Neutral
This update delivers regulatory clarity by explicitly defining tokenized stocks as securities rather than commodities. Clear rules reduce legal uncertainty, which is typically neutral for market sentiment. In past cases—such as the 2020 DeFi boom and subsequent SEC guidance—greater clarity led to stable growth rather than dramatic rallies or sell-offs. Short-term volatility may arise around committee votes, but long-term effects should support orderly tokenization projects and responsible market structure improvements.