Bitcoin News Today: SEC's Crypto Overhaul Sparks Bitcoin Surge Past $116,000

Bitcoin Surges Past $116,000 on Institutional InflowsThe SEC just unveiled ‘Project Crypto’: What you need to know^[1]

Bitcoin surpassed $116,000 in late 2025, driven by a wave of institutional inflows as U.S. regulators signaled a shift toward a more crypto-friendly framework. The surge coincided with the Securities and Exchange Commission (SEC) unveiling "Project Crypto," a sweeping initiative to modernize securities regulations and position the U.S. as the "crypto capital of the world."Coinbase Wins Partial Victory as Court Orders SEC To ...^[5] The initiative, led by SEC Chair Paul Atkins, emphasized streamlined rules for tokenization, custody, and trading, aiming to reduce regulatory ambiguity that had previously driven firms offshore.Coinbase Wins Partial Victory as Court Orders SEC To ...^[5]

Project Crypto seeks to integrate blockchain technology into U.S. financial markets by updating antiquated rules and fostering innovation. Key priorities include clarifying which tokens qualify as securities, tailoring disclosure requirements for crypto projects, and enabling "super-apps" that bundle crypto trading, custody, and traditional securities under a single regulatory license. The initiative also explores safe harbors for early-stage projects to encourage development while maintaining investor protections.Coinbase Wins Partial Victory as Court Orders SEC To ...^[5] This approach marks a departure from the enforcement-heavy strategies of former SEC Chair Gary Gensler, who faced criticism for imposing fines on crypto firms without establishing clear regulatory guidelines.

The regulatory shift gained momentum as the SEC announced the dismissal of its long-standing lawsuit against Coinbase, the largest U.S. cryptocurrency exchange. The case, which alleged Coinbase operated as an unregistered securities platform, was dropped after the agency's newly formed Crypto Task Force prioritized rulemaking over litigation. Coinbase's Chief Legal Officer, Paul Grewal, hailed the decision as a "complete win," arguing it signaled the end of the SEC's adversarial stance toward the industry. The move followed a partial court victory for Coinbase, where the Third Circuit ruled the SEC's rejection of its 2022 rulemaking petition was "arbitrary and capricious," urging the agency to provide clearer justifications for its regulatory decisions.

Market participants interpreted these developments as a green light for institutional investment. The SEC's focus on fostering innovation aligned with broader efforts by the Trump administration to reduce regulatory burdens on crypto. Earlier in 2025, President Trump signed an executive order easing crypto oversight, and industry-friendly lawmakers pushed for legislation to formalize a structured regulatory framework. These actions coincided with a surge in institutional adoption, including tokenized equity offerings and increased participation in decentralized finance (DeFi) platforms.

The regulatory clarity also addressed long-standing concerns about the SEC's internal recordkeeping practices. A recent inspector general report revealed that nearly a year of texts from former Chair Gensler were lost due to IT errors, raising questions about the agency's ability to enforce transparency. While this incident did not directly impact crypto regulations, it underscored the need for accountability-a theme echoed in Project Crypto's emphasis on "commercial viability" and investor confidence.

Analysts noted that the SEC's pivot could reshape the crypto landscape. By prioritizing clear rules over litigation, the agency aims to attract institutional capital and reduce offshore migration. However, critics warned that a lighter regulatory touch might increase risks of fraud, particularly in unregistered token offerings. The balance between innovation and investor protection remains a key challenge as the SEC finalizes its proposals.