Bitcoin News Today: Crypto Aligns with Traditional Rules as Regulators Resume, ETFs on Horizon

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have resumed full operations following a 43-day government shutdown that had paralyzed regulatory activity in the cryptocurrency sector. The agencies' return comes as a relief to market participants, with analysts highlighting the potential for accelerated approvals of crypto-related ETFs and renewed enforcement actions. Bitcoin (BTC-USD) edged higher to $106,399 amid the optimism, reflecting improved risk appetite as fiscal uncertainty waned.

The shutdown had left over 40 crypto ETF applications and regulatory tasks in limbo, including spot Bitcoin and Ethereum product reviews according to reports. With staff returning to work, the SEC and CFTC are now positioned to address backlogged filings, potentially easing access to institutional-grade crypto investment vehicles. This includes products like 21Shares' newly launched crypto index ETFs, which are registered under the Investment Company Act of 1940. The move signals a shift toward greater regulatory alignment with traditional asset classes, potentially boosting investor confidence.

Market dynamics have already begun to reflect the regulatory thaw. Bitcoin's rebound above $105,000 coincided with renewed accumulation by long-term holders, as evidenced by a 1.2% weekly increase in addresses holding more than 1,000 BTC. Stablecoin inflows also rose 9% week-on-week, a precursor to heightened spot market activity. Meanwhile, the Crypto Fear & Greed Index climbed to 69, indicating moderate greed-a stark contrast to its 47 reading a week earlier.

Regulatory clarity remains a focal point. A bipartisan draft bill from the Senate Agriculture Committee seeks to delineate the CFTC's expanded role in overseeing spot digital commodity trading, while the SEC retains jurisdiction over securities-linked products. This legislative effort aims to resolve long-standing jurisdictional disputes and provide a framework for consumer protections, with proponents arguing it could stabilize markets and attract institutional capital. The draft builds on the House-passed CLARITY Act, signaling congressional momentum toward comprehensive crypto oversight.

However, challenges persist. While the Senate's funding bill averted immediate fiscal gridlock, broader budget negotiations remain unresolved, with agencies operating under a temporary funding extension until January 30, 2026. Additionally, the SEC's recent approval of crypto products under the Securities Act of 1933-rather than the 1940 Act-has sparked debates over regulatory consistency. Grayscale's upcoming NYSE IPO, meanwhile, underscores the growing institutional interest in crypto, though its financials show a 19% revenue decline compared to the same period in 2024.

Looking ahead, the resumption of U.S. data releases could further influence market sentiment. Economists note that clearer macroeconomic signals may bolster confidence in both traditional and crypto assets. The SEC's planned token taxonomy framework, anchored by the Howey Test, and the CFTC's push for leveraged spot trading approvals also loom as key catalysts.

As agencies refocus on their mandates, the crypto market's muted reaction to the shutdown's end suggests evolving resilience to political volatility. Yet, with ETF approvals and regulatory clarity on the horizon, the sector remains poised for a potential December rally, contingent on sustained institutional participation and macroeconomic stability.