U.S. tokenization, stablecoin efforts may continue as crypto policy faces uncertainty

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U.S. tokenization and stablecoin efforts

Highlights

Tokenized stocks, bonds, and funds can expand under existing SEC and CFTC frameworks without new legislation despite increased congressional scrutiny.
The GENIUS Act, effective January 18, 2025, mandates liquid reserves and oversight for payment stablecoins, insulating issuers following bipartisan passage.
Broader crypto policy faces regulatory uncertainty as the failed Clarity Act and Democratic gains cast doubt on the speed and permanence of new SEC and CFTC rules.

Existing rules support tokenization and stablecoins

As reported by CoinDesk, efforts to move securities onto blockchain infrastructure and expand stablecoin payments can continue under current law even after Democrats' midterm gains, according to industry lawyers and executives. That leaves tokenized stocks, bonds and funds in a stronger position than other crypto segments that still depend on new federal legislation.

Peter Curley, head of global regulatory affairs at Ondo Finance, said he expects the Securities and Exchange Commission and Commodity Futures Trading Commission to face heavier congressional scrutiny, but does not see tokenized securities activity coming to a halt. He said both agencies have already made substantial progress without new legislation, particularly in tokenized securities and derivatives markets where established regulatory frameworks already exist.

Stablecoins are also viewed as relatively insulated because the GENIUS Act passed with bipartisan support in 2025. Abhishek Vaidyanathan, chief legal officer of the NEAR Foundation, said the law takes effect on January 18, fifteen days after the new Congress is seated, giving issuers a statutory framework that requires liquid reserves and federal or state oversight for payment stablecoins.

Broader crypto agenda faces political and regulatory risks

The outlook is less clear for the rest of the digital asset market, where policy still relies on existing interpretations and proposed rules rather than settled legislation. Lawyers said the SEC and CFTC can keep writing crypto rules, but those measures may prove vulnerable to reversal by a future administration and could take longer to finalize under closer Democratic oversight and possible changes in agency leadership.

The failed Clarity Act now faces a tougher path under Democratic control, leaving unresolved questions around broader market oversight and protections for decentralized finance developers. That creates a split outlook for the sector, with Wall Street-backed tokenization and stablecoin businesses able to move ahead more readily than other areas of crypto tied to Washington's unfinished legislative agenda.

Our earlier coverage of Hainan Rubber’s proposed subordinated perpetual sustainable securities explained how the company planned to refinance offshore debt via notes issued by its majority-owned unit Halcyon Agri, with features such as subordination and the option to defer coupons. We also highlighted the firm’s high leverage and liquidity position, and how its state-linked support profile underpinned continued funding access despite elevated debt metrics.

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