SEC Reopens Crypto Custody Rulemaking as Bitcoin Cools After Hot US Inflation Data

SEC Sends New Crypto Custody Proposal to the White House

American crypto markets are digesting two significant developments this week, one regulatory and one macroeconomic, both centered on the United States.

The U.S. Securities and Exchange Commission has taken a fresh run at one of the industry's longest-running compliance headaches: how registered investment advisers and investment companies are allowed to hold digital assets on behalf of clients. On August 25, the agency sent a new custody-rule proposal to the White House's Office of Information and Regulatory Affairs, part of the Office of Management and Budget, for inter-agency review before it can move toward a public vote.

Unlike the SEC's earlier attempt at tightening crypto custody requirements, which stalled under former Chair Gary Gensler, this version is being framed as investor-friendly rather than restrictive. Under current Chair Paul Atkins, the agency has described the rulemaking as an effort to clarify the custody framework for crypto assets and strip out "outdated provisions" that no longer serve investor protection now that digital-asset markets and security-holding practices have matured. The SEC has said the change responds directly to questions from investment advisers who remain unsure how to safely custody client crypto holdings under the existing framework.

The proposal itself has not been made public yet. Before the SEC can formally publish it and open the standard 60-day comment period, the budget office's review must first be completed. That means any concrete change to how advisers custody digital assets for American clients is still months away, but the filing signals that a clearer, more workable rulebook is now moving through the pipeline.

Bitcoin Retreats From $80,000 as Inflation Data Rattles Traders

While regulators work through the custody question, US markets delivered a reminder of how sensitive crypto prices remain to domestic economic data. Bitcoin had pushed above $80,000 earlier in the week, but a hotter-than-expected US inflation print triggered a wave of profit-taking and forced leveraged traders to unwind positions. The largest cryptocurrency settled back near $78,700–$79,000, essentially flat to slightly lower on the day, even as the broader market held up well.

Ethereum and Solana told a different story. Ethereum climbed roughly 1.6–2.6% to trade above $2,500, while Solana was the standout among major tokens, gaining close to 5.8% to reach just above $102. The divergence suggests that despite the inflation-driven jitters around Bitcoin, capital continued rotating into other large-cap tokens rather than exiting crypto altogether.

Total crypto market capitalization held around $2.76 trillion, up roughly 0.8% on the day, with Bitcoin's dominance still firmly above 57%. Sentiment gauges reinforced that risk appetite has not cracked: the Crypto Fear & Greed Index read 71, squarely in "Greed" territory and up from the previous session, even as the flagship coin cooled off.

What It Means for US Investors

Taken together, the two stories point in the same direction: American crypto markets are maturing on two fronts at once. Regulators are laying the groundwork for institutions to hold digital assets with clearer rules, while price action shows that Bitcoin is now trading in lockstep with mainstream macro data like inflation reports, much like traditional risk assets. For US-based investors and advisers, that means keeping an eye on both the Federal Reserve's inflation trajectory and the SEC's rulemaking calendar will matter just as much as watching the charts.