US Regulators Push Forward on Crypto Regulations, Boosting Bitcoin Price Target
The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have taken nine significant actions in recent weeks to clarify the regulatory environment for cryptocurrencies. This includes a proposed custody framework that would allow regulated investment advisers and funds to hold crypto assets under existing rules, as well as exemptions and no-action positions that permit certain activities.
The SEC's Regulation Crypto Assets proposal, issued on August 18, would create an offering regime for certain investment contracts involving crypto assets. The proposal includes exemptions for up to $5 million over four years and $75 million in a 12-month period, as well as a conditional safe harbor from the investment-contract definition.
The CFTC has also taken steps to clarify its approach to regulating cryptocurrencies, including granting an exemption that allows qualifying Tokenized Securities Venues to trade tokenized NMS stocks through permissioned automated market makers and liquidity pools. The agency has also updated its crypto and blockchain FAQs to address customer-funded investments in tokenized forms of permitted investments.
The alignment of the SEC's proposals with the CFTC's market framework could support the growth of cryptocurrency adoption, including a potential price target of $113,000 for Bitcoin by Citi. However, the regulatory environment remains uncertain, and any significant changes to the proposals or the CFTC framework could impact the industry.