Traders weighed the SEC's first formal crypto fundraising rules against lingering U.S.-Iran tensions and a risk-off pull from surging Treasury yields on Wednesday, with Bitcoin holding near $65,074. A White House meeting on crypto regulation, expected the same day, added to the caution, while altcoins mostly held their ground.
Bitcoin gained 0.5% to $65,074.4 by 10:02 ET on Wednesday, steadying as markets parsed new regulatory proposals from the SEC while U.S.-Iran jitters stayed in focus. A broader risk-off move across financial markets, tied to surging U.S. Treasury yields, kept crypto on the back foot, and anticipation of further regulatory cues from an upcoming White House meeting added to the caution.
SEC proposes first formal crypto fundraising rules
For a decade, the SEC policed crypto fundraising by suing token issuers one at a time rather than publishing rules, but that shifted this week. On Tuesday, the agency proposed new rules called "Regulation Crypto Assets," aimed at creating a tailored framework for certain crypto investment contracts.
The proposal sets up two exemptions from securities registration requirements. One would let eligible issuers raise up to $5 million over a four-year period, while the other would permit offerings of up to $75 million in any 12-month period. That larger tier mirrors Reg A+ Tier 2, the mini-IPO framework Congress built through the JOBS Act, and adds financial statements and ongoing reporting requirements.
SEC Chairman Paul Atkins said the proposal aims to give crypto entrepreneurs and market participants clear pathways to raise capital under federal securities laws. The plan also includes a safe harbor once an issuer has completed or permanently ceased the essential managerial efforts it promised under an investment contract, a framework Atkins traces directly to the Token Safe Harbor that Commissioner Hester Peirce first proposed in February 2020.
White House meeting could bring more regulatory clarity
Separately, President Donald Trump is expected to join a White House session of his administration's newly formed innovation committee on Wednesday, according to a Coindesk report cited by Investing.com. The gathering brings together crypto and prediction-market executives alongside representatives from traditional finance and the AI sector.
That session leads into a follow-up meeting at the Commodity Futures Trading Commission the next day, where the CFTC is expected to advance further discussion on crypto regulation. Meanwhile, efforts to pass the Clarity Act, a broader U.S. crypto regulatory overhaul, fell flat in Congress.
Altcoins tread water as ETF inflows continue
Broader crypto prices kept to a tight range. Ether rose 1.2% to $1,933.06, while XRP rose 1.4% to $1.0155, Solana gained 2.1%, Cardano fell 1%, and BNB added 0.3%.
Bitcoin exchange-traded funds saw $189 million in net inflows on Tuesday, while Ether ETFs took in $71 million over the same session.
Sources: Investing.com, SEC, Decrypt
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