Regulatory Clarity Boosts Bitcoin as SEC Overhauls Crypto Custody Rules

Bitcoin has steadied around $78,000 after last week's pullback. At the same time, a fresh regulatory development has put institutional crypto adoption back in focus as the Securities and Exchange Commission moves ahead with an overhaul of digital asset custody rules.

The SEC's proposed rewrite of custody rules covering crypto assets has entered White House review. The proposal is intended to modernize rules governing how investment advisers and investment companies hold client and fund assets, specifically addressing uncertainty around the custody of cryptocurrencies.

For the crypto industry, clearer rules could make it easier for traditional investment managers to hold digital assets while giving institutions greater certainty over which custodians and structures meet regulatory requirements.