Bitcoin News Today: SEC Unveils Crypto Reform Plan to Modernize Market Structures and Custody Framework

The U.S. Securities and Exchange Commission (SEC) has announced a comprehensive initiative to reform crypto custody and trading systems, signaling a potential shift in the regulatory approach to digital assets. Under the leadership of SEC Chair Paul S. Atkins, the agency is proposing new rules and exemptions tailored to the unique nature of the crypto market, with a focus on modernizing market structures and enhancing integration with traditional financial systems [1].

A key aspect of this reform involves revising the crypto custody framework to facilitate the development of crypto asset custody services. Simultaneously, the SEC aims to create a regulatory environment that allows for parallel trading of crypto and non-crypto securities, potentially enhancing market efficiency and lowering transaction costs [1]. These changes may encourage institutional investors to increase their participation in the crypto market, thereby fostering greater liquidity and stability [1].

The SEC's efforts appear to be part of a broader strategy to position the United States as a global leader in the crypto space. In line with these reforms, the agency recently approved in-kind redemptions for crypto ETFs, allowing institutional investors to receive crypto assets directly rather than cash. This move is expected to streamline operations and reduce costs for market participants [2].

In parallel, the Chicago Board Options Exchange (CBOE) has sought regulatory approval for a unified framework for crypto ETFs. The CBOE's proposal includes calls for the SEC and Commodity Futures Trading Commission (CFTC) to clarify federal rules on crypto custody, trading, and registration, reflecting growing institutional interest in standardized crypto financial products [3].

Market reactions to these developments have been largely positive. Analysts note that regulatory clarity may lead to significant capital inflows into the crypto market, potentially boosting trading efficiency and liquidity. These developments also align with the broader goals of the White House’s recent 166-page report on digital assets, which emphasizes the importance of enabling the trading of digital assets at the federal level and recommends clear regulatory authority for the CFTC over non-security digital assets [5].

While the White House report did not provide concrete details on the Strategic Bitcoin Reserve or U.S. Digital Asset Stockpile—topics outlined in a previous executive order—it reiterated the need to avoid policies that could hinder innovation in the crypto sector. The report also highlighted the importance of addressing illicit finance, including the regulation of coin mixers and the enforcement of anti-money laundering laws [5].

In the market, crypto firms are beginning to adopt financial strategies traditionally used in traditional finance. For example, Twenty One Capital is exploring the possibility of lending U.S. dollars against Bitcoin as collateral, mirroring Wall Street’s repo market practices [4].

Meanwhile, Bitcoin has maintained a price above $118,526 as of July 31, 2025, with a market cap of $2.36 trillion. Analysts suggest that the regulatory changes may lead to increased institutional engagement and further development in decentralized finance and tokenization sectors [1].

These developments reflect a growing convergence between traditional financial institutions and the crypto market. As regulatory frameworks evolve, the potential for broader adoption and integration of digital assets into mainstream finance is becoming increasingly tangible.

Source: [1] https://ng.investing.com/news/cryptocurrency-news/sec-chairman-unveils-project-crypto-to-make-us-a-global-leader-93CH-2037498 [2] https://my-cpe.com/insights/regulatory-updates/sec-updates/sec-gives-green-light-to-in-kind-crypto-etf-redemptions [3] https://www.binance.com/en/square/post/07-30-2025-cboe-seeks-sec-approval-for-unified-crypto-etf-framework-27657330950257 [4] https://www.bloomberg.com/news/articles/2025-07-30/crypto-firms-adopt-wall-street-s-financial-tactics-in-new-era [5] https://www.globalcompliancenews.com/2025/07/30/https-insightplus-bakermckenzie-com-bm-technology-media-telecommunications_1-united-states-the-genius-act-a-new-federal-framework-for-stablecoin-issuers-custodians-and-banks_07252025/