Bitcoin News Today: SEC Aims to Quell Crypto Chaos With Clarity and Investor Safeguards

The U.S. Securities and Exchange Commission (SEC) has outlined its Spring 2025 regulatory agenda, focusing heavily on the oversight of crypto assets. The agenda, released by the Office of Information and Regulatory Affairs, highlights a shift in the agency’s approach to regulation, emphasizing innovation, capital formation, and investor protection. Key areas of focus include the issuance, custody, and trading of crypto assets, as the SEC aims to establish clear rules to promote market confidence and deter regulatory arbitrage. The Commission also intends to propose amendments to existing rules to modernize them and reduce unnecessary disclosure burdens, in line with its broader deregulatory efforts [1].

The agenda also includes a review of the Consolidated Audit Trail (CAT), a system designed to track securities trades. The SEC plans to invite public comment on potential changes to the CAT, particularly in light of a recent court decision by the U.S. Court of Appeals for the Eleventh Circuit. Concerns have been raised about the escalating costs and cybersecurity risks associated with centralized data storage. This move reflects growing pressure from market participants and legislators to reassess the program’s structure and cost efficiency [1].

Meanwhile, U.S. Bank has restarted its Bitcoin custody service for institutional clients following a regulatory breakthrough. In 2022, the bank had halted the service due to the SEC’s Staff Accounting Bulletin (SAB) No. 121, which prohibited banks from holding digital assets. However, the rule was rescinded earlier this year, allowing U.S. Bank to resume its offering. The bank now supports institutional clients seeking custody for Bitcoin, including those managing exchange-traded funds (ETFs). This development signals increased confidence in the regulatory environment, particularly in light of the SEC’s approval of spot Bitcoin ETFs last year. U.S. Bank is working with fintech firm NYDIG to provide these services and has stated it is evaluating additional cryptocurrencies for inclusion based on risk and compliance criteria [2].

The regulatory clarity surrounding crypto assets has broader implications for financial institutions. The Federal Reserve’s recent decision to withdraw its strict crypto-related oversight for banks has further eased the compliance burden on financial firms. With the removal of the Fed’s supervisory program, banks are no longer required to notify the central bank or adhere to stringent guidelines for crypto activities. This shift aligns with a broader easing of regulatory pressure under the Trump administration, which has championed pro-industry policies and has personally invested in digital assets. The move to simplify compliance requirements is expected to encourage more traditional financial institutions to enter the crypto custody market, enhancing competition and potentially lowering costs for institutional investors [2].

In parallel, the U.S. and European Union have taken divergent approaches to stablecoin regulation. The U.S. recently passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which provides a regulatory framework for stablecoins backed by the U.S. dollar. The law marks a significant step in aligning stablecoin oversight with existing financial regulations, offering greater consumer protection and reducing the risk of fraudulent schemes. In contrast, the EU’s Markets in Crypto-Assets (MiCA) regulation, implemented in late 2024, offers a more comprehensive framework that covers all crypto assets. The EU’s approach emphasizes investor protection and financial stability, with MiCA establishing clear rules for stablecoin issuers and service providers. ECB President Christine Lagarde has expressed concerns about non-EU stablecoins operating within the EU market and has called for equivalence regimes to ensure that foreign-issued stablecoins meet the same standards as those governed by MiCA [3].

Source:

[1] Statement on the Spring 2025 Regulatory Agenda (https://www.sec.gov/newsroom/speeches-statements/atkins-2025-regulatory-agenda-090425)

[2] US Bank Restarts Bitcoin Custody Service After Years-Long (https://finance.yahoo.com/news/us-bank-restarts-bitcoin-custody-175101105.html)

[3] Crypto Rules in Europe vs. the US: Does Your Stablecoin (https://finance.yahoo.com/news/crypto-rules-europe-vs-us-184431208.html)