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U.S. Congress Introduces the BITCOIN Act of 2025

Key Points:

  • Congressional approval of the BITCOIN Act affects digital assets custody.
  • The Act recognizes the importance of financial sovereignty.
  • Market liquidity for Bitcoin and Ether is expected to rise.

In May 2025, the U.S. Congress introduced the BITCOIN Act of 2025, which explicitly supports the self-custody of bitcoin and other digital assets across the country.

The legislative move assures individuals of their right to control private keys, enhancing financial privacy and liberty, alongside driving market confidence.

The BITCOIN Act of 2025 affirms the right to self-custody digital assets, focusing on bitcoin and ether. Legislative leaders recognize the significance of maintaining financial sovereignty. The Act, S.954, highlights the need for a modern financial framework.

Key players in this shift include the SEC and FINRA, which have lifted previous restrictions, allowing broker-dealers to handle non-security digital assets. Neel Maitra, former SEC expert, emphasizes the potential market revitalization due to this lifting.

“Restrictions around broker-dealer custody of crypto asset securities deprived markets of securities of liquidity, effectively making them unviable. The withdrawal and the FAQs can inject new life into those markets, and so does the SEC’s recognition that broker-dealers can custody and trade crypto non-securities such as bitcoin.” – Neel Maitra

This regulatory shift has immediate implications for financial institutions, which can now engage more flexibly with crypto assets. Clarity enables greater institutional involvement in direct custody solutions.

The distinction between security and non-security assets, notably excluding bitcoin and ether from certain protections, influences market dynamics. Self-custody adoption is likely to expand further.

Future outcomes hinge on the broader acceptance and integration of self-custody solutions. Historical restrictions hindered growth, but the current regulatory environment fosters innovation in crypto asset handling.

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