Bitcoin News Today: U.S. Congress Passes BITCOIN Act 2025 Supporting Self-Custody of Digital Assets

The U.S. Congress introduced the BITCOIN Act of 2025 in May 2025, a significant legislative move that explicitly supports the self-custody of bitcoin and other digital assets across the country. This act assures individuals of their right to control private keys, thereby enhancing financial privacy and liberty, and driving market confidence. The legislation, known as S.954, recognizes the importance of maintaining financial sovereignty and highlights the need for a modern financial framework.

Key players in this regulatory shift include the SEC and FINRA, which have lifted previous restrictions, allowing broker-dealers to handle non-security digital assets. This move is expected to revitalize the market, as noted by Neel Maitra, a former SEC expert. Maitra emphasized that the lifting of restrictions around broker-dealer custody of crypto asset securities can inject new life into those markets, and the SEC’s recognition that broker-dealers can custody and trade crypto non-securities such as bitcoin is a significant step forward.

This regulatory shift has immediate implications for financial institutions, which can now engage more flexibly with crypto assets. The clarity provided by the legislation enables greater institutional involvement in direct custody solutions. The distinction between security and non-security assets, notably excluding bitcoin and ether from certain protections, influences market dynamics. Self-custody adoption is likely to expand further as a result of this regulatory environment.

Future outcomes hinge on the broader acceptance and integration of self-custody solutions. Historical restrictions hindered growth, but the current regulatory environment fosters a more favorable climate for the crypto industry. The BITCOIN Act of 2025 is part of a broader regulatory framework that includes the landmark "Bitcoin Strategic Reserve Act" passed on March 7, 2025. This act incorporates 200,000 bitcoins into the national reserve, representing a significant portion of the total Bitcoin supply. The legislation aims to bolster consumer confidence in the crypto industry, which has rapidly become a major player in the financial landscape.

The provisions of the BITCOIN Act include requiring stablecoins to be backed one-for-one with U.S. dollars or other low-risk assets, ensuring stability and trust in the digital currency market. The introduction of the BITCOIN Act of 2025 is a culmination of efforts to lead the global digital currency revolution. The U.S. government seeks to attract investment and talent to the digital asset sector, positioning the country as a leader in the rapidly evolving financial landscape. The legislation represents a pivotal moment for the U.S. as it navigates the complexities of integrating cryptocurrencies into its financial system. The passage of the BITCOIN Act is expected to have far-reaching implications for the crypto industry, fostering innovation and growth while ensuring regulatory compliance and consumer protection.