Could New SEC Crypto Custody Rules Ignite the Next Bull Run?

[Lexandroove]

I read earlier that the US Securities and Exchange Commission proposed new rules to make it easier for investment advisers and regulated funds to hold cryptocurrencies on clients' behalf.

The proposal, which aims to establish a tailored framework for how registered investment advisers, investment companies, and business development companies hold custody of crypto assets, seeks to modernise decades-old custody requirements and remove regulatory barriers, with Atkins doubling down on that in a recent X post.

I know that many might view it differently, but I believe that the regulatory push comes as a major driving force behind the crypto markets showing signs of renewed momentum, following a volatile start to the year.

Seeing as assets like Bitcoin and Ethereum, amongst others, have shown notable moves of recovery, with rising levels of demand being supported by promising economic data, could these be enough, or be of significance in ushering in the much-anticipated bull run?

What are your thoughts?

[348Judah]

There may be a market reaction that still causes a rise or fall in the price of Bitcoin, but this is not an indicator of the onset of the bull run season. Most breaking news events have only a short-term effect on the market price and don't determine the season we should be going into.

[Ojima-ojo]

cryptocurrency community knows and value self custody of the Bitcoin or other crypto assets, so having registered financial investment companies holding cryptocurrency assets in behalf of clients is some how a third party holding agreement which mandates the investors to transfer their Bitcoin to the custodian company wallet meaning losing control of your assets relying on third party.


That is where the whole draw back comes from, and most also the risks that comes from trusting such companies with your large Bitcoin portfolio.

[Catenaccio]

Seeing as assets like Bitcoin and Ethereum, amongst others, have shown notable moves of recovery, with rising levels of demand being supported by promising economic data, could these be enough, or be of significance in ushering in the much-anticipated bull run?

What are your thoughts?

You have your thinking, I have mine, others have theirs but we will mostly be wrong with our thinking to speculate the market. I more believe in Bitcoin market cycle as effects of Bitcoin halving rather than any other news. I know with time, after several Bitcoin halvings, and many Bitcoin blocks mined so far, there will be less bitcoins from future Bitcoin blocks.

This fact means Bitcoin halvings will have less effects on the market than what it had in previous market cycles. However I still believe that it is not time to no longer see such Bitcoin halving effects on Bitcoin market cycle.

SEC can do their jobs, which can have effects on the market sentiment, capital in the market including new capital flow but honestly I don't really care to make my speculation on SEC's decisions.

I simply accumulate bitcoins, and wait for a next cycle.

[Lexandroove]

There may be a market reaction that still causes a rise or fall in the price of Bitcoin, but this is not an indicator of the onset of the bull run season. Most breaking news events have only a short-term effect on the market price and don't determine the season we should be going into.

I wouldn’t treat the SEC development alone as definitive proof that a bull run has started. The more pressing question, in my opinion, is whether regulatory changes can contribute to sustained institutional demand and better market conditions over time.
A lasting trend usually requires stronger liquidity, demand, and broader participation, which favourable regulatory rules could play a major role in facilitating.

[lionheart78]

I know that many might view it differently, but I believe that the regulatory push comes as a major driving force behind the crypto markets showing signs of renewed momentum, following a volatile start to the year.

Regulatory is one of the major driving forces way back years ago but today, since the country like US had already accepted major cryptocurrency especially Bitcoin, any expansion about its regulation will only affect Bitcoin minimally.

Seeing as assets like Bitcoin and Ethereum, amongst others, have shown notable moves of recovery, with rising levels of demand being supported by promising economic data, could these be enough, or be of significance in ushering in the much-anticipated bull run?

The current recovery of some major cryptocurrency is not tied to this news. One of the reason why Bitcoin is recovering last September is that the spot Bitcoin ETF shows a strong buying which is recorded as the second largest monthly inflow since last year of OCtober. It was written here: https://www.theblock.co/news/markets/2026-10-02-spot-bitcoin-etfs-september-inflows-417547

What are your thoughts?

I do not think this kind of news can trigger the next bull run, Bitcoin needs a bigger catalyst to trigger a long-term hype and FOMO.

[Z-tight]

I'd share the link here for those who have not read the news and are wondering what the op is talking about:
https://www.sec.gov/newsroom/press-releases/2026-100-sec-proposal-would-address-how-investment-advisers-funds-can-custody-crypto-assets-under-federal
Since the Clarity Act's failure to pass the Senate, the SEC and the CFTC have released statements that they would use their existing authority to create certain rules and a framework that the industry can work with, and i believe this proposal is a product of that. This excerpt is a perfect summary of this proposal:

The Commission’s proposal would modernize custody rules and expand investor choice by removing regulatory barriers that inhibit the adviser’s ability to provide crypto-related investment advice. It would also allow regulated funds to offer clients access to a wider range of crypto asset-related investment strategies.

However, i am a strong advocate of self-custody, so i don't recommend third party custody of crypto. But for people who use these investment companies, these rules would improve what they are offered and eliminate certain barriers to their operation. There is a 60-day public comment period, so let's see what the public feedback on this would be.

[Cryptomultiplier]

There may be a market reaction that still causes a rise or fall in the price of Bitcoin, but this is not an indicator of the onset of the bull run season. Most breaking news events have only a short-term effect on the market price and don't determine the season we should be going into.

I wouldn’t treat the SEC development alone as definitive proof that a bull run has started. The more pressing question, in my opinion, is whether regulatory changes can contribute to sustained institutional demand and better market conditions over time.
A lasting trend usually requires stronger liquidity, demand, and broader participation, which favourable regulatory rules could play a major role in facilitating.

In other words from my own understanding global liquidity is the control button for big investors because they enable big institutions enter the market and this contribute to long term growth.
However, a massive bull run is a product of global cash flow, real supply and demand and capital in the biggest capacity.
So the rules alone won't suffice.

[Odohu]

This will trigger some market reactions like some people rightly said but this is not a strong fundamental to trigger the next bull run. Although, the market is already positive as price have remained above $80k beyond September with the momentum that started in August still sustained. So, such news can inject some momentum in the market that will make price seek new ATH which is about $40k from the current price.  

[BIT-BENDER]

I read earlier that the US Securities and Exchange Commission proposed new rules to make it easier for investment advisers and regulated funds to hold cryptocurrencies on clients' behalf.

The proposal, which aims to establish a tailored framework for how registered investment advisers, investment companies, and business development companies hold custody of crypto assets, seeks to modernise decades-old custody requirements and remove regulatory barriers, with Atkins doubling down on that in a recent X post.

I know that many might view it differently, but I believe that the regulatory push comes as a major driving force behind the crypto markets showing signs of renewed momentum, following a volatile start to the year.

Seeing as assets like Bitcoin and Ethereum, amongst others, have shown notable moves of recovery, with rising levels of demand being supported by promising economic data, could these be enough, or be of significance in ushering in the much-anticipated bull run?

What are your thoughts?

Call me orthodox if you want but I don't get why anyone would be holding Bitcoin on another person, it is just completely unnecessary to me.
Going by my take I don't think this rule if this is actually the only rule added will cause any bull run, it would require something greater than this to really affect the demand and supply chain and cause a bull run.

[Zoomic]

The news of the SEC proposal can only contribute, I don't think it's enough to ignite a bull run.

When custody rules are changed, it can remove barriers but price movement of Bitcoin still comes down to demand, liquidity and the amount of fresh capital entering the market.

I think this will likely bring in some big investors who were previously staying away because of the regulatory and custody complications and if that happens in large scale, the effect on the market could become bigger over time.

[2stout]

No, I don't believe the new SEC crypto custody rules will ignite the next bull run.  At best, perhaps a short lived spike.  As with history, what seems to have consistently and most ignited the bull runs are the halving events.  So expect the next big bull run to occur sometime in 2028.

[X-ray]

I don't think it will ignite next bull run.

This is just another news for institutional investor and making it easier for them to deploy capital to altcoin which many of them have no qualified custodian service offered.

In fact I think this belongs to altcoin discussion because the rule have nothing to do with Bitcoin mainly because Bitcoin have many qualified Bitcoin custodian which is a circumstance where this rules won't apply to.

[Darker45]

No, I don't think so. As it appears, it doesn't seem that big of a deal. It's not a 0-1 kind of development or a breakthrough. As such, it may not be something that ignites a bull run.

The same with the failed Clarity Act. Although it was hyped on social media, peddled as one big thing that triggers a strong bull run if passed, I didn't quite agree. In the same manner that the prediction of a correction if the highly anticipated bill won't advance was also wrong. It goes to show that the bill wasn't really a big deal.

Although I believe all these recent regulatory developments would provide some kind of assurance and, therefore, confidence to investors in the future, at this point in time in the game, they aren't turning points anymore. Regulators have already embraced Bitcoin and crypto to a great extent.

[hd49728]

No, I don't think so. As it appears, it doesn't seem that big of a deal. It's not a 0-1 kind of development or a breakthrough. As such, it may not be something that ignites a bull run.

The same with the failed Clarity Act. Although it was hyped on social media, peddled as one big thing that triggers a strong bull run if passed, I didn't quite agree. In the same manner that the prediction of a correction if the highly anticipated bill won't advance was also wrong. It goes to show that the bill wasn't really a big deal.

Although I believe all these recent regulatory developments would provide some kind of assurance and, therefore, confidence to investors in the future, at this point in time in the game, they aren't turning points anymore. Regulators have already embraced Bitcoin and crypto to a great extent.

Turn off social media notifications, log out your social media accounts, even don't read news or read less news but the best is don't read news, and only focus on the following thing.

Bitcoin market cycle
Bitcoin halving in 2028
Bitcoin bull run will be some time in 2027 to 2029.
We are already at nearly the end of 2026 year, and we still have about one year or more to accumulate cheap bitcoins.

Who care about what happen with SEC in 2026.
They won't be able to stop Bitcoin next market cycle and bull run. They did not approve Bitcoin Spot ETFs in the USA in more than 10 years but during those years, Bitcoin has some market cycles and bull runs.

[BALIK]

cryptocurrency community knows and value self custody of the Bitcoin or other crypto assets, so having registered financial investment companies holding cryptocurrency assets in behalf of clients is some how a third party holding agreement which mandates the investors to transfer their Bitcoin to the custodian company wallet meaning losing control of your assets relying on third party.


That is where the whole draw back comes from, and most also the risks that comes from trusting such companies with your large Bitcoin portfolio.

Not everyone values self custody and privacy as much as they claim. That is why Cexs are still thriving and continuing to hold vast majority of market liquidity. Not to mention, the massive capital inflow pouring into BTC ETF . That shows plenty of investors are willing to hand custody of their assets to a third party in exchanges for convenience.

And third party custody is not anything new in this market, its actually been around for a long while now.

[Die_empty]

The news of the SEC proposal can only contribute, I don't think it's enough to ignite a bull run.

When custody rules are changed, it can remove barriers but price movement of Bitcoin still comes down to demand, liquidity and the amount of fresh capital entering the market.

I think this will likely bring in some big investors who were previously staying away because of the regulatory and custody complications and if that happens in large scale, the effect on the market could become bigger over time.

The crypto industry is emerging; therefore, existing laws may not reflect current reality. The Investment Advisers Act of 1940 and the Investment Company Act of 1940 would have to be amended to ensure that advisers and broker-dealer custodial services operate smoothly in the US financial industry.

Some investors would always prefer third-party custody because they lack the knowledge or confidence to hold their assets. This law could increase the number of people who would want to invest in crypto. But it isn't enough to ignite the bull run.

[Lexandroove]

cryptocurrency community knows and value self custody of the Bitcoin or other crypto assets, so having registered financial investment companies holding cryptocurrency assets in behalf of clients is some how a third party holding agreement which mandates the investors to transfer their Bitcoin to the custodian company wallet meaning losing control of your assets relying on third party.


That is where the whole draw back comes from, and most also the risks that comes from trusting such companies with your large Bitcoin portfolio.

Self-custody has always been one of Bitcoin’s core advantages, so that validates your concern, but I think institutional custody and self-custody can coexist rather than one replacing the other.

I believe that regulated custodians can make Bitcoin more accessible to investors who aren’t comfortable managing private keys, while individuals who prioritize sovereignty can continue holding their own keys to avoid this becoming a trade-off between regulatory protection and direct control.

[Catenaccio]

Self-custody has always been one of Bitcoin’s core advantages, so that validates your concern, but I think institutional custody and self-custody can coexist rather than one replacing the other.

I believe that regulated custodians can make Bitcoin more accessible to investors who aren’t comfortable managing private keys, while individuals who prioritize sovereignty can continue holding their own keys to avoid this becoming a trade-off between regulatory protection and direct control.

It's important but there is a more important thing: Bitcoin blockchain does not have any powerful code line or smart contract which can be used by the founder, co-founders (if any co-founder), developers, exchanges, casinos and governments to freeze or seize bitcoins in Bitcoin non-custodial wallets.

Altcoins have non-custodial wallets (multiple coins) and people can have private keys, wallet mnemonic seed phrases but they are not the only one that control their altcoins. Altcoin blockchains have smart contracts which can be used to freeze coins, even you store them in non-custodial wallets.

Using open source or close source non-custodial wallets with altcoins is mostly useless to avoid that risk. Your coins are under risk of freeze any time, with a click from the founders, developers, issuers, and governments.

[DanWalker]

It's important but there is a more important thing: Bitcoin blockchain does not have any powerful code line or smart contract which can be used by the founder, co-founders (if any co-founder), developers, exchanges, casinos and governments to freeze or seize bitcoins in Bitcoin non-custodial wallets.

Altcoins have non-custodial wallets (multiple coins) and people can have private keys, wallet mnemonic seed phrases but they are not the only one that control their altcoins. Altcoin blockchains have smart contracts which can be used to freeze coins, even you store them in non-custodial wallets.

Using open source or close source non-custodial wallets with altcoins is mostly useless to avoid that risk. Your coins are under risk of freeze any time, with a click from the founders, developers, issuers, and governments.

That's only true for altcoins that have freeze or blacklist functions built into their smart contracts like USDT , USDC. It doesn't apply to every altcoin.

Native coins like ETH, SOL or XMR don't have a built in freeze function at the protocol level. So if you hold these coins in a non custodial wallet, you actually do have full control over them. Neither the founder nor a government can freeze your coins with a single click.