The US Senate Banking Committee approved an amendment to its landmark crypto market structure bill, clarifying that tokenized corporate stock offerings will be regulated as securities under current law. The new clause specifies that on-chain representations of equity tokens must adhere to the same registration, disclosure and compliance requirements as traditional securities.
Under the revised language, issuers of tokenized stocks will be required to register offerings with the Securities and Exchange Commission (SEC) or qualify for an existing exemption. This aligns digital asset frameworks with established securities regulations, addressing concerns that unregulated tokenization platforms could bypass investor protections. Sponsors of the amendment emphasized the importance of legal certainty in fostering institutional participation and safeguarding retail investors.
The clarification follows extensive industry lobbying and stakeholder feedback, which highlighted ambiguities in the initial draft. Without the explicit securities designation, tokenized stocks risked operating in a regulatory gray area, potentially exposing investors to unvetted offerings and fraud. The updated bill also calls for further coordination between the SEC and the Commodity Futures Trading Commission (CFTC) to streamline oversight of hybrid products that blend security and commodity characteristics.
Regulatory experts praised the bipartisan effort as a balanced approach to innovation, noting that clear rules will encourage responsible growth of tokenization use cases, such as dividend distributions, proxy voting and fractional ownership. With the amendment in place, industry participants anticipate more rapid development of tokenized equity exchanges, leveraging blockchain for enhanced settlement speed and liquidity while maintaining robust investor safeguards.
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