SIFMA Urges SEC for Progressive Crypto Regulations to Boost TradFi Participation

On July 3, 2025, the Securities Industry and Financial Markets Association (SIFMA) convened a meeting to advocate for the establishment of open and progressive crypto regulations by the Securities and Exchange Commission (SEC). This initiative aims to bridge the gap between traditional finance (TradFi) and the crypto space, impacting major assets such as Bitcoin (BTC) and Ethereum (ETH). By promoting regulatory clarity, SIFMA seeks to foster innovation and facilitate the entry of TradFi into the crypto market.

During the meeting, SIFMA urged the SEC's Crypto Task Force to develop consistent and progressive rules for digital assets. This call for action reflects SIFMA's ongoing efforts to achieve a unified regulatory approach. The dialogue, led by Hester Peirce of the Crypto Task Force, signifies a notable shift towards modernized regulations. SEC Chairman Paul Atkins emphasized the importance of establishing clear rules for the issuance, custody, and trading of crypto assets. He stated, "To establish clear rules of the road for the issuance, custody, and trading of crypto assets, aiming to protect investors while encouraging responsible innovation."

While institutional investments have remained unchanged, SIFMA's push for updated rules signals the potential for larger TradFi participation in the crypto market. This participation is contingent on achieving regulatory clarity. Although immediate market shifts are not evident, this development could influence future price movements. The discussion covered various aspects of digital asset issuance and tokenized securities, highlighting possible regulatory, financial, and technological outcomes. Historical trends suggest that perceived regulatory clarity could serve as a bullish indicator for TradFi-related digital assets.

Previous advocacy efforts by TradFi, particularly in the aftermath of the FTX collapse, have demonstrated how regulatory clarity can influence market dynamics. Similar pushes by SIFMA in the past have triggered significant policy discussions, often preceding market upturns in BTC and ETH. According to expert analyses, TradFi advocacy often correlates with price surges in digital assets once regulations are perceived as imminent or favorable, underscoring the importance of regulatory transparency.