After the SEC and CFTC Join Forces, What Can the Crypto Market Look Forward To?

Original Article Title: Crypto Just Got Its Rulebook. Here's Why That's Only Half the Story.
Original Article Author: Crypto Unfiltered
Translation: Peggy, BlockBeats

Editor's Note: On March 17th, the SEC and CFTC jointly released an interpretive document, clearly stating for the first time that most crypto assets are not securities and establishing a more defined classification framework. This change signifies that the biggest "uncertainty variable" in the crypto industry is being eliminated, with regulation no longer a looming risk but rather a rule system that can be understood and adapted to.

However, as emphasized in this article, regulatory clarity is merely a prerequisite, not a true turning point.

In terms of market performance, Bitcoin entered a range-bound phase after reaching an all-time high, reflecting the current core contradiction: the infrastructure for institutional entry is in place, but true fund allocation has not yet occurred; retail sentiment remains cautious, and the market lacks new driving forces to establish trends.

Meanwhile, a more significant change is brewing. On-chain assets represented by stablecoins and tokenized government bonds are rapidly developing, with traditional financial assets gradually being "moved onto the chain," even evolving towards stock tokenization. As assets themselves become digitized, the boundaries between traditional portfolios and crypto assets are gradually disappearing.

Therefore, what truly deserves attention is not the rules themselves, but the flow of funds after the rules are implemented, especially when wealth management institutions begin large-scale allocations.

The rules have been clarified, and the path is gradually becoming clear. The next step is when the real game of this era truly begins.

Below is the original article:

On March 17th, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly released a lengthy 68-page guidance document, officially classifying most crypto assets as non-securities. Among them, 16 tokens including Bitcoin, Ethereum, Solana, and XRP were explicitly designated as digital commodities. For the first time in over a decade, American developers, investors, and institutions finally received the answer they have been eagerly waiting for — what the rules actually are.

This is undoubtedly a significant event. But if you think regulatory clarity in itself is the most important event, then you may have missed the point.

The more critical question is what happens next. And the answer points to a corner of the financial system that most crypto investors rarely pay attention to: wealth management.

The Rulebook Has Finally Arrived

For years, the regulatory landscape in the United States could be summarized in one sentence: the SEC considers almost everything a security, and very few have the ability to truly push back as the cost of confrontation with regulatory agencies is extremely high.

This era is coming to an end. The CLARITY Act was passed in the House last July with bipartisan support of 294-134; the GENIUS Act provides a clear framework for stablecoins; and now, the joint guidance from the SEC and CFTC has introduced a formal token classification system, distinguishing between digital commodities, digital securities, and assets that fall in between.

The guidance also introduces the concept of the attach-and-detach principle: a token may be deemed a security in its early fundraising stages, but once the project achieves independent operation, this designation can be removed. In other words, project teams now have a compliance path that was previously only theoretical.

What's most important here is not the technical details but the signal itself. Regulatory agencies are, for the first time, answering questions affirmatively rather than evading them. This has opened the door for a wave of compliance capital that was previously on the sidelines due to regulatory ambiguity.

Why Bitcoin Is Stuck in a Range-Bound Period

Meanwhile, Bitcoin finds itself in a period of indecision. After hitting an all-time high above $109,000 earlier this year and spending much of 2025 in the six-figure range, the price has retraced, seeking a new equilibrium. The macro environment has played a significant role.

But the deeper issue lies in structural factors. Spot Bitcoin ETFs have absorbed a significant amount of supply, yet the majority of holders are still retail rather than institutional. According to CoinShares, as of Q1 2025, institutions (13F filers) held around $21 billion in Bitcoin ETF exposure, a decrease from $27 billion in the previous quarter. Additionally, despite corporate treasuries beginning to allocate to Bitcoin, the average allocation on the advisory side remains below 1% of portfolios.

This is the current tension: the infrastructure needed for institutional entry has largely been built, but actual allocation behavior has yet to materialize.

The retail funds historically driving the crypto bull run are currently largely absent. Market sentiment is generally cautious, and the fear and greed cycle has yet to enter a sustained euphoric phase — which typically signals a market top. Until retail returns or institutions significantly increase their positions, the price is likely to remain range-bound and highly sensitive to macro shifts.

The Overlooked $100 Trillion Blindspot

What is truly underestimated by most people is this part of the story.

The global wealth management industry oversees around $100 trillion in assets, with the vast majority still allocated in traditional investment portfolios. The classic 60/40 model (60% stocks + 40% bonds) has been the default allocation for decades.

However, this model is now facing substantial pressure. Amidst interest rate uncertainty, geopolitical turmoil, and a long-term trend of fiat currency devaluation, the rationale for holding a large proportion of bonds is rapidly weakening. Gold has reacted to this, and so has Bitcoin. The long-assumed 40% bond allocation, a staple in modern investment portfolios, is quietly becoming one of the most questioned parts of such portfolios.

Yet, the wealth management industry's response remains slow. Most registered investment advisors (RIAs) are still managing portfolios that look almost identical to those of five years ago. Not because they perceive no value in crypto assets, but because compliance frameworks, platform capabilities, and client education still lag behind reality.

But this scenario is changing. The conversation has shifted from what is Bitcoin? to how do I compliantly offer such assets to my clients? The demand is real, and the infrastructure to meet this demand is gradually being put in place.

Tokenization is the Key Chapter

Tokenization is the key chapter to follow. The scale of Real World Asset (RWA) tokenization has grown from around $5 billion in 2022 to over $240 billion today, a three-year increase of 380%. Private credit leads this, followed by tokenized U.S. treasuries. Several major institutions, including BlackRock, Franklin Templeton, and Goldman Sachs, have started issuing tokenized products on public blockchains.

Next up is stock tokenization. Robinhood launched a tokenized version of U.S. stocks for European users in 2025. As regulatory frameworks become clearer, similar products are likely to enter the U.S. market. Once this process unfolds, the boundary between traditional brokerage accounts and crypto wallets will begin to blur. Whether investors realize it or not, every portfolio will gradually transform into a digital asset portfolio.

These assets can be traded 24/7, used as collateral in decentralized lending protocols, held, staked, lent out, and even transferred without the need for clearinghouses and settlement delays. This is not a distant imagination but the direction in which the entire financial system is moving.

What to Focus on Next

Regulatory clarity is important, but it should be seen as a necessary condition rather than a true catalyst. The real turning point will come when wealth management firms start allocating client funds at scale — and that moment has not yet arrived.

Until then, macro factors remain key variables. The liquidity environment, USD strength, and interest rate expectations continue to be the core factors influencing Bitcoin's price in the short term. The fundamental rationale is steadily building, but there is still uncertainty about when the price will respond.

The rules have been written. Next, it's time to step up.

[Original Article Link]