What happened
The US Securities and Exchange Commission advanced a proposed rewrite of digital asset custody rules to the White House Office of Information and Regulatory Affairs on 25 August 2026. The deregulatory framework aims to clarify how investment advisers hold client cryptocurrencies. Meanwhile, Bitcoin steadied near US$78,350 after retreating from above US$81,000, as spot ETF inflows moderated to US$5.8 million.
Why it matters here
Regulatory ambiguity around digital asset custody has historically limited traditional institutional participation. Clearer rules established by major global regulators enable fund managers and institutional custodians to hold digital assets with greater certainty. This structural progress supports liquidity, reduces counterparty risks, and provides a more mature foundation for digital asset integration into diversified portfolios.
What to watch
The official publication of the SEC's proposed custody rule expected in October 2026, alongside daily US spot Bitcoin ETF inflow figures for signals of institutional sentiment.
Source
proactiveinvestors.com