Bitcoin News Today: SEC Advances Crypto Integration With Parallel Trading Framework and ETF Reforms

The U.S. Securities and Exchange Commission (SEC) is advancing efforts to integrate crypto assets into traditional financial markets by developing a regulatory framework that would allow for the parallel trading of crypto securities and traditional securities [1]. SEC Chair Paul S. Atkins has directed staff to explore adjustments to the custody system to support the growth of crypto asset custody, while also working on reforms to the National Market System Rules to facilitate tokenized securities trading [2].

A recent milestone in this regulatory evolution was the SEC’s approval of in-kind redemptions for Bitcoin and Ethereum exchange-traded funds (ETFs). This development is expected to improve liquidity and efficiency in the crypto ETP market, potentially unlocking a $710 billion supply constraint for Bitcoin ETFs [3]. The approval is seen as a significant step toward institutional adoption of digital assets, as it reduces operational complexity and aligns crypto fund mechanics with those of traditional ETFs.

The regulatory momentum is further supported by the passage of the CLARITY Act by the U.S. House of Representatives on July 17, 2025. The bill aims to clarify the jurisdictional divide between the SEC and the Commodity Futures Trading Commission (CFTC) by assigning the SEC authority over security tokens and the CFTC over non-security (commodity) tokens [5]. This legislative action aligns with broader efforts by both the SEC and the White House to define a coherent policy framework for digital assets, reflecting a growing recognition of their role in the capital markets.

Atkins has emphasized that the SEC’s approach is designed to foster innovation while maintaining investor protections. The proposed framework will likely address how staking mechanisms can be integrated into ETPs and ensure consistent regulatory treatment across different asset classes [2]. These efforts signal a more accommodating stance from the SEC toward crypto markets and suggest a potential shift in the agency’s traditional enforcement-heavy approach.

As the framework takes shape, market participants are watching closely for how the SEC will balance innovation with oversight. The evolving regulatory landscape is expected to encourage greater institutional participation and strengthen market confidence in digital assets as a viable investment class [3]. The agency’s commitment to modernizing its approach underscores its recognition of the transformative potential of digital finance and its determination to adapt to the changing market dynamics.

Source:

[1] https://www.sec.gov/newsroom/speeches-statements/atkins-digital-finance-revolution-073125

[2] https://www.sec.gov/files/ctf-written-letter-sec-07312025.pdf

[3] https://www.techi.com/sec-approves-in-kind-bitcoin-ethereum-etfs/

[5] https://www.mondaq.com/unitedstates/fin-tech/1658782/digital-currency-blockchain-quarterly-litigation-update

[6] https://www.aol.com/white-house-unveils-crypto-policy-183849070.html