Stablecoins and Tokenization Hold Up After Democratic Win
Stablecoins already fall under the GENIUS Act, while tokenized securities and derivatives can also keep growing within existing SEC and CFTC frameworks.
Key Takeaways
- Tokenization of stocks, bonds, and funds appears resilient to the Democratic election win and can continue within existing frameworks.
- Stablecoins already fall under the GENIUS Act, which requires issuers to hold liquid reserves and face oversight.
- The broader U.S. crypto agenda is running into more political headwinds, making new legislation for the sector harder to pass.
Wall Street's plans to put stocks, bonds, and funds on blockchain rails appear better able to withstand the Democratic election win than other parts of crypto. Stablecoin payments can also keep going for now under existing rules, while the broader U.S. crypto agenda faces more political headwinds.
Tokenization Stays on Track
Peter Curley, head of global regulatory affairs at tokenization company Ondo Finance, expects the SEC and the CFTC to face more questions from Congress. Even so, he sees little reason why tokenized securities would stall. According to him, regulators have already made a lot of progress without new legislation, especially on tokenized securities and derivatives, which already have existing frameworks.
Aaron Kaplan, CEO of regulated digital asset company Prometheum, painted a similar picture. Broker-dealers are looking at crypto offerings for brokerage accounts, while securities issuers are developing tokenization strategies. International trading platforms are also looking at the Depository Trust & Clearing Corp.'s tokenization service as a way to offer tokenized U.S. stocks outside the U.S. That fits with the broader shift toward tokenized markets, such as BlackRock's new tokenized money market funds, which are meant to serve as reserve assets for stablecoin issuers.
Stablecoins Already Have a Framework
Stablecoins have one clear advantage: the GENIUS Act, which passed in 2025 with broad support, has already set up a federal framework for payment stablecoins. That law requires issuers to back their tokens with liquid reserves and comply with federal or state oversight. The law takes effect on January 18, fifteen days after the new Congress is sworn in.
Abhishek Vaidyanathan, chief legal officer of the NEAR Foundation, said that gives issuers an existing law to lean on. The rest of the market, he said, is still operating under existing laws, interpretations, and proposed rules.
More Pressure on the SEC and CFTC
The Democratic majority makes it harder for Washington to push through a broad crypto law. The Clarity Act did not pass, which makes it tougher to quickly finish the larger digital asset agenda. At the same time, the SEC and CFTC are still working on rules in 2026 without full new legislation.
Among other things, the SEC has proposed adding blockchain technology to rules for transfer agents, a carveout for trading platforms for tokenized securities, and a framework around Regulation Crypto Assets. Meanwhile, the CFTC kept working on perpetual futures, a crypto derivative with no expiration date.
For European crypto readers, this matters because it shows that parts of the market can already grow within existing laws, while broader reforms remain more politically vulnerable. Stablecoins and tokenized securities in particular may be able to follow a different path than the rest of the U.S. crypto market.