US Senate updates crypto bill to block tokenized stocks from getting a 'commodity' label

The Senate just stuffed a brand new clause into its crypto bill to stop tokenized stocks from being labeled as commodities, closing in on a regulatory wall that could box crypto firms ￰0￱ update came Friday, with a new provision inside the draft of the Responsible Financial Innovation Act of ￰1￱ goal? Draw a hard ￰2￱ that get tokenized onto a blockchain won’t sneak through commodity loopholes ￰3￱ update isn’t coming out of ￰4￱ Lummis, the Republican senator from Wyoming, told CNBC a day earlier that the Senate wants the bill finalized fast. “We want this on the president’s desk before the end of the year,” she ￰5￱ means President Donald Trump, who’s back in the White House and already signed the stablecoin bill into law in ￰6￱ House and Senate both cleared that bill over the ￰7￱ for crypto firms like Coinbase and Ripple, this new one is the heavyweight fight, the one that defines what’s a security and what’s ￰8￱ House already passed its version of the market structure bill in ￰9￱ Senate is still working on ￰10￱ both versions are done, they’ll need to get merged before the final copy hits Trump’s desk.

That’s where the friction ￰11￱ plans committee votes and full vote by November Right now, Cynthia says the Senate Banking Committee is scheduled to vote later this month on the part of the bill that deals with the Securities and Exchange ￰12￱ Senate Agriculture Committee, which oversees the Commodity Futures Trading Commission, is planning to vote in October. A full floor vote could happen as early as November, Cynthia ￰13￱ Democrats in the Senate haven’t signed on ￰14￱ Cynthia claims conversations are happening. “There have been efforts to pair Democrats and Republicans on certain sub-issues within the bill to make sure that there’s, to the greatest extent possible, substantial bipartisan agreement on key issues,” she ￰15￱ if every Republican backs the bill, at least seven Democrats need to join to get it across the line.

A spokesperson from the Senate Banking Committee reportedly told CNBC that the current version of the bill “reflects feedback from hundreds of stakeholders on a wide range of questions.” This feedback helped shape the line-by-line regulatory split between securities and commodities, especially for assets moving ￰16￱ the Senate is trying to define boundaries, Galaxy Digital, a Nasdaq-listed crypto company, is already out here testing ￰17￱ Wednesday, Galaxy announced that its SEC-registered GLXY shares can now be tokenized directly on a public blockchain using the Opening Bell platform, built by crypto startup ￰18￱ said that shareholders can now tokenize their equity and transfer it to approved wallets, as long as they pass ￰19￱ tokenized shares could also be traded on DeFi platforms using Automated Market Makers, giving them more liquidity and ￰20￱ claims that this isn’t a synthetic or wrapped token, these are direct equity issuances ￰21￱ tokenizes SEC-registered shares through Superstate platform The Opening Bell platform launched back in May and started with support for ￰22￱ claims to be the first platform offering SEC-registered public shares directly on blockchain infrastructure, without the need for intermediaries or token ￰23￱ Novogratz, founder and CEO of Galaxy, said the goal is to bring what works in crypto into the traditional ￰24￱ his words: “We’re proud to be working with Superstate to help lay the groundwork for an onchain capital market that bridges traditional equities with next-generation ￰25￱ goal is a tokenized equity that brings the best of crypto — transparency, programmability, and composability — into the traditional ￰26￱ we’re taking part in building a model that can scale, not just for Galaxy, but for the market more broadly.” Last month, Galaxy said it had started working with Superstate to explore tokenization of its GLXY ￰27￱ that effort is ￰28￱ up to Bybit and start trading with $30,050 in welcome gifts