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

[Donneski]

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.

Yes, we know that Bitcoin is in a much better position than most altcoins when it comes to qualified custodians but saying that the SEC proposal has "nothing to do with Bitcoin" sounds a bit too extreme and that's because even SEC in their own announcement clearly talked about Bitcoin and the broader crypto market.

At the end of the day, if the new framework makes custody clearer as well as offer more flexibility to funds/advisers that'll still be beneficial to institutions holding Bitcoin.

It's a crypto rule and Bitcoin doesn't have to be the asset that benefits most for it to be relevant to it.

[moneystery]

What are your thoughts?

I don't think this rule could trigger the next bull run, even though there's a chance the market will react positively since more players will enter the market, but that's just a temporary move. The market is still in a generally bearish position, and for a bull run to happen, something stronger might be needed than just news like this. But even so, I think this is positive news, at least Bitcoin is now more seen as a legitimate asset.

[Luzin]

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.

Institutionally, this is good news, which means investment in Bitcoin is increasingly developing in various ways. This situation will increase user confidence and more people will join. For those who do not yet understand the meaning of decentralization, they only see that it is officially registered with the government and must be safe, which will make them interested. But for us who understand this situation, we will not touch it. Because the control of the assets is not in our hands but in someone else's. I am sure most of those who understand this system probably will not join. But for beginners, it will be very attractive.

[tread93]

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?

I would have to agree tat this does show signs of renewed momentum and if they didn’t see this industry growing then why would they even bother? This is a serious move to even further legitimize these instruments that all the major investment firms have put together such as the ETFs for tokens. Hopefully we willl see a major bull run soon, UPTOBER is nearly upon us!!!

[BlackBoss_]

I would have to agree tat this does show signs of renewed momentum and if they didn’t see this industry growing then why would they even bother? This is a serious move to even further legitimize these instruments that all the major investment firms have put together such as the ETFs for tokens. Hopefully we willl see a major bull run soon, UPTOBER is nearly upon us!!!

Uptober?

Let's check Bitcoin market price history over years and see Bitcoin performance in Octobers.
Previous Octobers have an average of +13.2% and a median of +10.8%. Past October performances are actually upward but not too bullish, and not best months. It's important to keep cautious and practice carefully because there is no October as same as other Octobers.

https://cryptorank.io/price/bitcoin/analytics

[davis196]

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?

If the SEC decides to introduce more liberal crypto custody rules, this would have a positive effect on the crypto world, but let's not be so optimistic about upcoming bull runs and FOMO phases. My personal belief is that the crypto and the stocks markets would keep going sideways in the next few months. I also wouldn't be so optimistic about the longevity of such new rules and regulations. The Democrats will come back to power, which means that, at some point, the SEC might start tightening all crypto regulations in the US.

[free-bit.co.in]

Uptober?

Let's check Bitcoin market price history over years and see Bitcoin performance in Octobers.
Previous Octobers have an average of +13.2% and a median of +10.8%. Past October performances are actually upward but not too bullish, and not best months. It's important to keep cautious and practice carefully because there is no October as same as other Octobers.

https://cryptorank.io/price/bitcoin/analytics

If october is not the best month, what month do you reckon is out of all 12? It is not a coincidence they call it Uptober and Moonvember.

That said, I agree we still need to be cautious, since not every October ends in green. Historical data is just an reference, not some fixed rule. At the end of the day, market moves come down to macro factor and capital flow or market sentiment and bunch of other stuff.

[OsaiEmma]

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?

Are we actually talking about Bitcoin bull run? This will happen anyway regardless of fundamentals or not. Do you understand how Bitcoin price discovery works, and the importance of order book? This is what actually drives the Bitcoin price, and it is something that has already been anticipated.

You might be wondering what I'm talking about, right? I'm talking about the 4 years cycle. This is the major driving force of the Bitcoin cycles. This anticipation generates very strong global liquidity; yes, major fundamentals can trigger a reaction in the market, but without this anticipation (halving, and the cycle), I don't think we'll be seeing any bull or bear market. So...whether there are major news/fundamentals or whatnot, Bitcoin will undergo its different cycles.

These are exactly my thoughts

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.

Do you honestly think your on-chain transfer of Bitcoin adds a cent to the Bitcoin price? The privilege of having a unified price discovery is all thanks to centralized exchange's order books. We can say: yeah, there are DEXs too; you should also know that these DEXs are somewhat Centralized—not at the smart contract/protocol level—and their prices also need to balance out with CEXs too. So...we can decide to talk about trust and decentralization all day, but most (vast majority) of the architecture used around Bitcoin are centralized—in fact, most structures that make Bitcoin convenient and usable are somewhat Centralized.

Just as the OP said here:

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.

They can, and should coexist; if not, it will be really difficult to use Bitcoin and see Bitcoin get to where it is today.

[Smack That Ace]

I also wouldn't be so optimistic about the longevity of such new rules and regulations. The Democrats will come back to power, which means that, at some point, the SEC might start tightening all crypto regulations in the US.

SEC is an independent agency, and afaik its war on crypto under Gensler was mostly his own agenda, not really orders from the Biden admin. So we shouldn't assume crypto will be under threat just because the Democrats get back into the White House.

And if the Clarity Act gets passed before 2028, there's nothing to worry about even if the next SEC chair is an anti-crypto guy like Gensler. Once the rules are in place and everything is clearly defined, they've got no excuse left to give the industry a hard time.

[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?

I would have to agree tat this does show signs of renewed momentum and if they didn’t see this industry growing then why would they even bother? This is a serious move to even further legitimize these instruments that all the major investment firms have put together such as the ETFs for tokens. Hopefully we willl see a major bull run soon, UPTOBER is nearly upon us!!!

It’s obviously a positive signal for institutional adoption, though I’d still approach with caution, as nothing seems guaranteed just yet.

Regulatory clarity could bring more capital and confidence into the market, but sustained price momentum will ultimately depend on demand, liquidity, and broader economic conditions.

Fingers crossed Uptober lives up to our expectations.

[Renampun]

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?

We're talking about a bull run.. I don't think this is the kind of event that can be triggered just because of news like this. It's true that this is positive news, but it can't cause a bull run.. even from the looks of it, it doesn't seem to have that much impact on the market, let alone trigger a bull run, it's still far from that. So I think we need to be careful not to jump to conclusions that a bull run can happen just because of a single piece of news.. a deeper analysis is needed before making such a conclusion.

[tread93]

I would have to agree tat this does show signs of renewed momentum and if they didn’t see this industry growing then why would they even bother? This is a serious move to even further legitimize these instruments that all the major investment firms have put together such as the ETFs for tokens. Hopefully we willl see a major bull run soon, UPTOBER is nearly upon us!!!

Uptober?

Let's check Bitcoin market price history over years and see Bitcoin performance in Octobers.
Previous Octobers have an average of +13.2% and a median of +10.8%. Past October performances are actually upward but not too bullish, and not best months. It's important to keep cautious and practice carefully because there is no October as same as other Octobers.

https://cryptorank.io/price/bitcoin/analytics

Yes, it’s phenomenal these past few years all over social media the phrase “UPTOBER” in recent years October has been incredible for bitcoin but you’re right no two or three or four Octobers and beyond are the same, I for one an waiting for ULTRATOBER to see this parabolic uplift. Now wouldn’t that be something.

[Dave1]

There could be an impact, but I don't think that it's going to be huge. We have seen a lot of new SEC from when Trump won his first Presidency and then from Biden to Trump again. I will say that it's very small percentage to trigger the next bull run.

What triggers a massive spike is the old and traditional block halving. Everyone is looking at this as the biggest event in Bitcoin because the supply is going to be cut in half and then the supply is going to be affected. Then demand shoots and obviously the price is going to increased overtime. So that is the catalyst and not a single person or any influential personality in the crypto market.

[LuckyCrypto777]

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?

This is good news, but with a caveat. Yes, more funds will now offer their Bitcoin services to the public. This is expanding adoption.
But on the other hand, only the monopoly Coinbase Custody currently holds Bitcoin for institutions. Let's assume the SEC will start granting rights to other custodians, as Fidelity, for example, is now trying to get into this space. But the main thing is that they can all ensure the complete security of ETF investors' Bitcoin. Because now, more than ever, the digital security of companies is being tested by hackers, including with the help of AI.

[YOSHIE]

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

In my personal assessment of the crypto custody rules proposed by the SEC that could change the old regulatory uncertainty of the Gary Gensler era and provide legal certainty to the Bitcoin market, This will certainly be the main door for investors to enter the Bitcoin market because they don't need to worry about regulations, yes automatically if investors enter, of course this can trigger a spike in Bitcoin prices and market changes in general.

Maybe we all know that big investors have experienced problems buying Bitcoin, this is all due to rigid regulations, if the proposal submitted by the SEC is successful, of course the rules will no longer be rigid, This means that many investors want to take crypto-based investment steps. When buyer pressure increases, of course bullish momentum will occur in the crypto market, which will bring a positive response from various parties, especially the richest companies and large investors.

[hd49728]

In my personal assessment of the crypto custody rules proposed by the SEC that could change the old regulatory uncertainty of the Gary Gensler era and provide legal certainty to the Bitcoin market, This will certainly be the main door for investors to enter the Bitcoin market because they don't need to worry about regulations, yes automatically if investors enter, of course this can trigger a spike in Bitcoin prices and market changes in general.

Maybe we all know that big investors have experienced problems buying Bitcoin, this is all due to rigid regulations, if the proposal submitted by the SEC is successful, of course the rules will no longer be rigid

With small investors and their small funds, they don't have much to lose and they don't care too much about legal issues. It's different with people who are very rich or institutional investors, they care firstly on how to be safe legally, how to protect their capital safely before finding opportunities of investment and get richer.

Bitcoin can be interesting but if there are legal concerns, big institutional investors will not likely to join because getting legal problems will cause many troubles, financially and psychologically. People or institutional investors who are already rich never want to put themselves into such hard situations while they can invest money in traditional assets very safely in legal aspect.

[Rgram]

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.

The news do carry how certain barriers that obstructed how custody of investment coins would be treated and made reference to creating clear policies but, didn’t specify on what some of these barriers might have being. I was hoping they would hint on what these might be as to policies or regulations that might be seen to be barriers.

However, I’m not overly concerned about what part these new policy creation would bring as, it’s overly focused on custody by a third party rather than self custody. It would mean even more to have policies that would enhance the self custody of Bitcoin rather than encourage people to go into their party investment and custody of Bitcoin.

[goldkingcoiner]

I think the easing of restrictiona and regulations on cryptocurrency, especially coming from the SEC, is definitely a good thing. Instead of stubbornly staying with the old system, they have recognized that it was not working.

So I see it as a positive thing. Could it trigger the next bull run? Maybe. Probably not.

[Compromise me]

With small investors and their small funds, they don't have much to lose and they don't care too much about legal issues. It's different with people who are very rich or institutional investors, they care firstly on how to be safe legally, how to protect their capital safely before finding opportunities of investment and get richer.

Bitcoin can be interesting but if there are legal concerns, big institutional investors will not likely to join because getting legal problems will cause many troubles, financially and psychologically. People or institutional investors who are already rich never want to put themselves into such hard situations while they can invest money in traditional assets very safely in legal aspect.

One thing is sure most of the peoples not care about what is happening at this level because they are doing things for their own interest in long run and these changes are going to be have not impact on their investments even its going to be have no enough impact on bitcoin because few things are now settled and they will be follow them for having good future of all stake holders.
Surely big institutes are going to be face some issues if things are going to be not favorable because legal things are always create chaos and its never help them for staying on good level recently few events increase complications but these are going to be have settled because now big investors are having good influence which is also helping them for having more profit its going to be positive for bitcoin.