Crypto World
Bitcoin Adoption Metrics Say One Thing, Price Action Says Another
Key takeaways
-
Bitcoin’s price reflects short-term marginal buying and selling, while adoption reflects long-term structural shifts. Ownership expansion, institutional integration and merchant growth can accelerate even when the market price remains flat or declines.
-
In 2025, Bitcoin expanded significantly across institutions, banks, corporations, merchants and sovereign entities. These shifts represent deeper entrenchment within global financial systems, even as headline price performance appeared underwhelming.
-
Institutions accumulated substantial amounts of Bitcoin, but much of this demand was offset by distribution from long-term holders. As supply changes hands between cohorts, price may consolidate instead of surge.
-
Merchant adoption and Lightning Network expansion improve Bitcoin’s real-world functionality. However, widespread instant conversion to fiat limits sustained net buying pressure unless merchants retain the Bitcoin they receive.
The contrast between Bitcoin’s (BTC) market price and its network adoption has never been more stark. While the price chart has spent much of the past year well below its peak, the underlying data reveals a different reality. In 2025, Bitcoin witnessed a massive, quiet expansion across banks, corporations and sovereign states.
This paradox exists because short-term marginal price formation is often driven by speculative noise, whereas structural adoption is driven by long-term institutional entrenchment. Bitcoin’s fundamentals are compounding at record speed even when the ticker remains stagnant.
This article explores why Bitcoin’s structural adoption across institutions, advisors, corporations and merchants has accelerated even as price action underperforms. It explains how ownership transfer, small allocation sizes and macro liquidity can delay adoption’s impact on short-term price movements.
Bitcoin adoption and price track fundamentally distinct phenomena
When people refer to Bitcoin adoption, they are typically describing gradual, long-term structural shifts:
-
Who is accumulating and holding Bitcoin?
-
Which companies or platforms are launching Bitcoin-related products and services?
-
Who is beginning to accept it as payment?
-
Which institutions, corporations or even governments are incorporating it into their balance sheets or reserves?
These underlying changes evolve slowly, building incrementally over many months or years.
Price, by contrast, is determined at the margin in real time. It responds primarily to:
-
Immediate buyers and sellers in the market
-
Current liquidity dynamics
-
Leverage, futures and derivatives positioning
-
Broader macroeconomic sentiment and risk appetite
-
Supply being released or withheld by long-term holders
Strong adoption can steadily broaden the ownership base without necessarily driving prices higher. It can even coincide with flat or declining prices if distribution from seasoned holders matches incoming demand from newcomers. Ownership can shift between cohorts without triggering sharp repricing.
Did you know? As of March 15, 2026, more than 20 million Bitcoin had been mined out of a maximum total supply of 21 million, representing more than 95% of all BTC that will ever exist. The final Bitcoin is not expected to be mined until around 2140.
How expansion dynamics seem to be unfolding
While Bitcoin’s price action had been relatively weak as of March 2, 2026, adoption trends continued to show strength:
Institutions are accumulating at scale
In 2025, institutions reportedly accumulated roughly 829,000 Bitcoin across businesses, governments, funds and exchange-traded funds (ETFs). This was not a marginal change but a meaningful shift in ownership structure.
Importantly, institutional exposure represents millions of underlying individuals gaining access through brokerage accounts, retirement plans, sovereign wealth funds and corporate balance sheets.
Much of this demand was absorbed by distribution from long-term holders and early adopters. When early whales sell into deeper liquidity, the price does not necessarily surge. Instead, supply shifts from one cohort to another.
Investment advisors have been net buyers for eight consecutive quarters
Registered investment advisors (RIAs) oversee roughly $146 trillion in client assets globally. Since Bitcoin ETFs launched, RIAs have steadily allocated capital, reportedly around $1.5 billion per quarter, without a single net-selling quarter.
That consistency matters.
However, average allocations remain extremely small. Many advisors hold Bitcoin at just basis-point levels in diversified portfolios. Until allocations move from fractions of a percent toward 1% to 2% model weights, the price impact may remain gradual.
In other words, the pipeline is open, but the flow rate is still increasing.
Banks are once again developing Bitcoin-related products
A growing share of major US banks are actively developing Bitcoin custody, trading, advisory and related services. Improved regulatory clarity compared with previous years has reduced institutional reluctance and opened the door to broader participation.
This growing involvement from traditional banks marks a key step toward normalization. Bitcoin is evolving from a speculative, peripheral asset into one that is increasingly embedded within mainstream financial systems and infrastructure.
That said, building products is not the same as achieving widespread availability. Initial launches often target ultra-high-net-worth individuals, institutional clients or remain in limited pilot phases. Rolling out full retail access requires significant time, compliance and operational scaling.
Ultimately, this infrastructure serves as a foundational enabler of future adoption rather than an immediate trigger for rapid market shifts.
Corporate Bitcoin adoption and the weight it brings
Corporate accumulation of Bitcoin can influence the market in several ways:
-
It steadily removes Bitcoin from liquid, circulating supply.
-
It demonstrates high-conviction, treasury-level endorsement from established businesses.
-
It fosters peer benchmarking, encouraging more companies to follow suit.
However, a large portion of these purchases occurs over-the-counter (OTC) or through carefully structured, gradual accumulation programs designed to avoid disrupting spot markets. This measured approach means corporate buying often reshapes long-term ownership patterns far more than it drives short-term explosive price action.
In short, corporate buying may influence long-term ownership patterns more than short-term price action.
Did you know? Bitcoin mining now consumes less energy than many traditional industries, including gold mining and the global banking system, according to several comparative energy studies.
Surge in merchant adoption of Bitcoin
Merchant acceptance of Bitcoin expanded rapidly in 2025. In November 2025, the Bitcoin Lightning Network reached a record $1.17 billion in volume. This suggests that the network is no longer used only for experimental “coffee” payments, but has also become a layer for high-value institutional settlements.
For merchants, Bitcoin offers clear operational advantages, including:
-
Drastically lower processing fees compared with traditional card networks
-
Elimination or near-elimination of chargeback risk
-
Smoother, cheaper cross-border settlements
A large majority of merchants still opt for instant conversion of received Bitcoin payments into fiat currency through payment processors. As a result, incoming transaction volume does not reliably translate into sustained net buying pressure on Bitcoin itself.
Payments adoption meaningfully enhances Bitcoin’s real-world utility. However, utility alone does not generate lasting scarcity or upward price pressure unless merchants choose to hold the BTC they receive.
Bitcoin adoption by countries continues to grow
Throughout 2025, Bitcoin’s role as a strategic reserve asset expanded significantly as five more countries added it to their reserves. This wave of adoption spanned diverse regions and financial structures, including sovereign wealth funds in Saudi Arabia and Luxembourg, the Czech Republic’s central bank and direct acquisitions by Taiwan and Brazil.
Government involvement in Bitcoin adoption carries significance for several reasons. Countries operate on multidecade time horizons rather than quarterly earnings cycles. They typically adopt strategic, long-term holding policies rather than short-term trading. Adoption by sovereign entities confers powerful legitimacy on any asset class, signaling to markets, institutions and the public that Bitcoin is becoming part of mainstream financial frameworks.
Did you know? Lost Bitcoin is estimated to total several million coins, permanently reducing the effective circulating supply and increasing long-term scarcity.
Bitcoin’s volatility continues to decline
One of the most underappreciated indicators of maturing adoption is Bitcoin’s steadily declining volatility. Over the past decade, Bitcoin’s annualized volatility has fallen. Successive market cycles have produced progressively narrower percentage drawdowns and rallies compared with the extreme swings seen in earlier bull and bear phases.
This structural decline in volatility reflects several reinforcing developments:
-
Markedly deeper and more resilient market liquidity
-
More diversified distribution of ownership across holder cohorts
-
Growing institutional and professional participation
-
More sophisticated, liquid derivatives markets (futures, options and perpetuals) that help absorb shocks
Bitcoin’s volatility profile now increasingly resembles that of established asset classes such as stocks, commodities and foreign exchange. This aligns with the preferences of conservative capital allocators, including pension funds, endowments and risk-averse institutions.
Why hasn’t Bitcoin price reacted more aggressively?
While institutional and sovereign adoption increased in 2025, the market’s immediate price action remained muted. This quiet accumulation phase suggests that the true impact of large capital inflows was masked by macroeconomic headwinds.
-
Ownership transfer absorbs demand: When long-term Bitcoin holders distribute into institutional demand, the market can absorb large volumes without sharp upward price moves. Supply simply changes hands as adoption grows and price consolidates.
-
Adoption widens the base, not the margin: Marginal buyers and sellers play a key role in setting the price of cryptocurrencies. Structural adoption broadens the ownership base but does not always shift the aggressive marginal bid right away. Until fresh demand exceeds available supply, price can remain range-bound.
-
Allocation sizes remain small: Many institutions and advisors now allocate to Bitcoin, but at very modest weights. If that changes, marginal demand could increase.
-
Macro liquidity matters: Bitcoin exists within a broader macro environment. Factors shaping capital flows include liquidity conditions, interest rate expectations and global risk appetite. Greater Bitcoin adoption does not mean it is insulated from macro cycles.
Cointelegraph maintains full editorial independence. The selection, commissioning and publication of Features and Magazine content are not influenced by advertisers, partners or commercial relationships.
Tally announced its shutdown amid the shifting regulatory climate regarding cryptocurrencies in the US.
The regulatory climate in the US is shifting, and although many consider it for the better, the changes are already taking effect.
Tally, a governance tooling platform that’s used by more than 500 decentralized autonomous organizations (DAOs), including Uniswap, Ethereum Name Service (ENS), and Arbitrum, announced that it will be shutting down after more than five years of operations.
In a video posted on X, the CEO of Tally, Dennison Bertram, outlined some reasons for the decision to wind down operations.
https://t.co/WD6Z4uVTeR pic.twitter.com/JJt3XIIJbl
— Tally (@tallyxyz) March 17, 2026
The move comes just as the SEC and the CFTC issued joint guidance clarifying that most cryptocurrencies are not securities, a major de-risking event for the entire industry.
While the previous administration pushed many projects toward a decentralized structure in the form of a DAO to reduce legal risk, the current, more relaxed environment has reduced demand for DAO governance, as Wu Blockchain noted in its commentary on the news.
Tally will not be conducting an ICO. Bertram said that continuation plans are already in the works with all of the firm’s enterprise clients, while the interface will remain operational for them as needed.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
More Australians reported using cryptocurrency to pay for goods and services in 2026 compared to the year before, but banking friction has continued to weigh on crypto users, according to a newly published report by crypto exchange Independent Reserve.
The annual survey of 2,000 “everyday Australians” was conducted between Jan. 12 and Jan. 30.
It found that the share of Australians using crypto to buy goods or pay for services doubled from 6% to 12%, with the report suggesting “more Aussies are viewing crypto as a practical payment method rather than just a speculative bet.”
Among the respondents who used crypto for goods and services, 21% reported using crypto for online shopping, making it the leading real-world use case.
Another 16% said they used crypto to pay for services such as freelancing and video game purchases.
Despite growing adoption, barriers remain, with some citing a lack of education and training, and the technology being too complex to use.
Banking issues on the rise
Beyond complexity, banking blocks were highlighted as a significant obstacle. A Binance survey last year found that users faced banking barriers when engaging with exchanges and crypto businesses — a problem the Independent Reserve’s survey respondents also flagged.
Around 30% of investors said they have experienced delays or rejections when trying to buy cryptocurrency or transfer funds to a crypto exchange at least once, compared with 19.3% in 2025.
Banking restrictions on crypto transactions in Australia tightened around 2023, when major banks, including Commonwealth Bank and National Australia Bank, introduced measures such as payment delays, caps on transfers to crypto exchanges and additional identity checks.
Younger investors reported more trouble with transaction delays than their older counterparts, and those making smaller transactions reported greater interference.
“For many Australians, the lack of regulation hits home when a payment to a crypto exchange is delayed or blocked, an issue that has continued to rise for another year,” the report authors said.
“These interruptions affect both consumers and businesses, showing how cautious banks are with crypto when the rules aren’t clear.”
Clear licensing and regulation are the solution
The report said the findings suggest that banks have not relaxed their posture toward crypto and may be refining their approach by focusing on user behavior and transaction patterns instead of transaction size, underscoring the growing need for regulatory clarity.
Related: Crypto lobby slams Australian broadcaster’s ‘sensational’ Bitcoin article
“Clear licensing and regulation can help fix this. By setting high standards for crypto operators, banks would have more confidence that transactions are legitimate,” they added.
“For Australia’s blockchain industry, which has faced banking hurdles for over a decade, effective regulation could finally bridge the gap between exchanges and banks, giving investors and businesses more certainty and reliability.”
Crypto executives told Cointelegraph last month that Australia’s crypto market is making progress in user growth and regulatory reforms, but there are still a range of issues to iron out.
Magazine: Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warns
The US Securities and Exchange Commission and the Commodity Futures Trading Commission have issued a joint interpretation outlining how crypto assets are treated under federal securities laws. Most notably, the statement emphasised that most crypto assets are not themselves securities.
Summary
- SEC and CFTC issue joint interpretation stating most crypto assets are not securities and outlining how they fall under federal law
- The guidance introduces a token classification framework and clarifies treatment of airdrops, staking, and other on-chain activities.
Both agencies released the interpretation as one of their first coordinated steps since signing a memorandum of understanding, with the update detailed in a Tuesday notice. According to the SEC, the interpretation would serve as an “important bridge” as the US Congress continues to work toward market structure legislation for digital assets.
The interpretation, according to the regulators, will provide a “coherent token taxonomy for digital commodities, digital collectibles, digital tools, stablecoins, and digital securities,” and clarify how a “non-security crypto asset” may or may not fall under the definition of an investment contract.
The interpretation also clarifies how federal securities laws apply to activities such as “airdrops, protocol mining, protocol staking, and the wrapping of a non-security crypto asset.”
“It also acknowledges what the former administration refused to recognize – that most crypto assets are not themselves securities,” SEC Chairman Paul Atkins said in an accompanying statement.
“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws,” he added.
Separately, Atkins has said that “only one crypto asset class remains subject to the securities laws,” identifying it as “traditional securities that are tokenized.”
Until now, there has been a significant degree of regulatory ambiguity and a fragmented approach to digital asset oversight.
Which has fueled persistent market confusion and led to a series of high profile enforcement actions initiated against various industry participants and major exchanges.
Over the long run, this unified interpretation is expected to foster greater institutional adoption and provide the legal certainty necessary for sustainable innovation within the American financial ecosystem.
US Senator Tim Scott says he is expecting a possible compromise this week on a stablecoin yield payments provision that has stalled a crypto market structure bill in the Senate.
“I believe that this week we will have the first proposal in my hands to take a look at,” Scott, the chair of the Senate Banking Committee that is working to advance the bill, said on Tuesday at a crypto lobby event in Washington, D.C.
“If that actually happens before the end of this week, and I think that it will […] I think we’re going to be in much better shape,” he added.
The Senate has been looking to advance its version of a crypto market structure bill that outlines how regulators will approach crypto after the House passed similar legislation in July, called the CLARITY Act.
The Senate’s bill has stalled amid negotiations between banking and crypto lobbyists over a provision in the legislation that would ban third parties from offering stablecoin yield payments.
Banking groups assert that stablecoin yields paid by platforms such as crypto exchanges are a loophole in the GENIUS Act, which banned yield payments from stablecoin issuers, and could threaten the stability of the banking system through deposit flight.
As stablecoin yield payments are a popular way for exchanges to entice customers, crypto lobbyists have fought the claims and accused the banks of anti-competitive behavior.
Other issues in bill also making progress
Scott said the issue of stablecoin yield was only the “largest publicly celebrated challenge” of the bill, but other issues under negotiation included provisions around ethics, decentralized finance, and “who is carved in and who is carved out” of the rules.
“Those issues seem to pale in comparison to the rewards issue, but they’re still very important outstanding issues that we are nibbling away at as we work on the more popular issue of rewards and yield,” he added.
Related: CLARITY Act risks handing crypto to centralized players: Gnosis exec
“We have made a lot of progress over the last probably 30 days or so,” Scott said. “We’re working on a lot of issues, but every single day it feels like the big momentum is finally on our side and we’re heading in the right direction.”
Procedural rules mean two committees are overseeing crypto market structure legislation in the Senate, as the bill concerns the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Senate Banking, which oversees the SEC, indefinitely postponed a markup of the crypto bill in January, while the Senate Agriculture Committee, which oversees the CFTC, sent its markup of the bill to the Senate floor that same month.
Magazine: Quitting Trump’s top crypto job wasn’t easy: Bo Hines
On March 16, hourly inflows into centralized crypto venues spiked to 6,100 units, the highest level in over a month as a broad market rally took hold. Data compiled for the period show that larger transfers dominated the flow, comprising 63% of total inflows—the strongest share dating back to mid-October 2025. The surge in exchange deposits comes as the leading digital asset has advanced roughly 12% for the month, with intraday prints approaching six-week highs near 76,000 in mid-March. Traders frequently move funds to exchanges in anticipation of selling or swapping into stablecoins, a pattern that market participants watch closely for signs of distribution when price momentum wavers.
CryptoQuant’s analysis highlighted that the spike included a notable rise in the share of large inflows, a behavior historically linked to selling pressure. These on-chain dynamics add a layer of nuance to the ongoing rally, suggesting that even as prices push higher, there could be a growing readiness among market participants to monetize gains. The data, reported by Julio Moreno, the head of research at CryptoQuant, underscore the choppy balance between demand and potential supply as the market navigates macro uncertainty and cross-asset risk sentiment. CryptoQuant
Beyond the on-chain signal, the price landscape remains a focal point for traders. Bitcoin’s price action has driven the market to a roughly 12% gain for March, with the asset trading near multi-month resistance levels. In recent days, the market has flirted with a six-week high around $76,000, a level that has proven challenging to break on several attempts. Market observers point to the Realized Price, a measure of the average price at which active supply transacted, as a proxy for potential resistance. The Realized Price currently sits in the neighborhood of $84,700, with the lower band—where many traders previously found concrete resistance during bear phases—acting as a rough guide for possible price ceilings in the near term. This dynamic was evident as the price repeatedly tested the $75,000 area on Coinbase, finding resistance at each try in a short span of time. TradingView data corroborate the near-term challenge around that psychological threshold.
Amid the price action, traders are keenly watching the Federal Reserve’s policy trajectory. The forthcoming Fed meeting, scheduled for Wednesday, sits at the center of market expectations, with many participants pricing in no interest-rate changes for March. CME Group’s FedWatch tool showed a high probability—about 98.9%—that the federal funds rate will remain unchanged, with only a 1.1% chance of a hike. The market’s attunement to the Fed reflects a broader risk-off risk-on mood that often drives crypto liquidity and ETF flow dynamics in tandem with macro cues. As coverage in traditional outlets highlights, a hawkish or cautious stance from the central bank could alter risk appetite across assets, including cryptocurrencies. CME FedWatch data and related market commentary underscore the tightrope between growth worries and inflation concerns that has defined the current regime.
In context, the rally’s momentum appears fragile, and the on-chain signals—while pointing to ongoing demand—also warn of potential distribution if large holders decide to realize gains as headline risk shifts. The price vicinity around $75,000 remains a key focal point; if the asset can push above this zone, it could test the next band near the realized price level, although history shows the lower RP band can act as a stubborn resistance in bear-market cycles. Traders are therefore weighing whether the current flow pattern represents a temporary flush of liquidity to exchanges or the onset of a broader reallocation into longer-term holdings or other assets, including stablecoins.
Why it matters
For investors, the observed spike in exchange inflows—especially with a rising share of large transfers—serves as a reminder that on-chain activity does not always align with short-term price strength. If sellers emerge from notable exchange deposits, price weaknesses could follow, even in a currently constructive market backdrop. The Fed’s rate stance, coupled with macro headlines, can influence liquidity and risk sentiment, which in turn shapes how and where capital flows. For market builders and liquidity providers, monitoring the balance between on-chain realized prices and exchange inflows could offer early clues about shifts in supply-demand dynamics and potential volatility around key technical levels.
From a macro perspective, the interplay between monetary policy expectations and crypto price action remains a critical driver of flows and risk tolerance. The Fed’s decision on Wednesday—alongside ongoing inflation readings and geopolitical developments—will likely set the tone for near-term momentum. Traders keeping a close eye on the on-chain data and the official communications should be prepared for rapid shifts in sentiment, especially if the Fed signaling strengthens or weakens the case for rate cuts later in the year.
What to watch next
- Federal Reserve decision and accompanying statement (Wednesday): assess any changes to forward guidance and inflation outlook.
- Next batch of on-chain data from CryptoQuant: watch for shifts in the share of large inflows versus overall inflows and any corroborating metrics on exchange net flows.
- Price action around the $75,000 level and the realized price vicinity near $84,700: look for breakout or rejection patterns and volume confirmation.
- Market reaction to Fed commentary: observe risk appetite shifts that could impact liquidity, ETF flows, and spot market participation.
Sources & verification
- CryptoQuant insights on exchange inflows and the share of large inflows for March 16–17, including the 63% figure.
- CME FedWatch tool data on the probability of rate hold versus hike.
- Associated Press reporting on Fed policy expectations and inflation considerations in the current environment.
- Cointelegraph market coverage discussing Bitcoin’s price around $70k and near-term resistance levels.
- TradingView BTCUSD data for price action on Coinbase as a reference for breakout and resistance testing.
Bitcoin exchange flows rise ahead of Fed decision; on-chain signals warn of selling pressure
Bitcoin (CRYPTO: BTC) exchange flows surged ahead of the Federal Reserve’s policy decision, with on-chain data indicating a potential tilt toward distribution despite a broader rally. On March 16, centralized exchanges recorded inflows totaling 6,100 coins—the highest since February 20—according to CryptoQuant. A closer breakdown shows large transfers dominating the flow, making up about 63% of total inflows, the strongest proportion observed since October 2025. These signals emerge as the asset has climbed roughly 12% in March, drawing near $76,000 in intraday trading on March 17. The behavior of inflows and on-chain metrics has historically foreshadowed price dynamics, and traders are weighing whether the current momentum can be sustained or whether a wave of selling could emerge as participants seek risk-adjusted gains. CryptoQuant notes the potential for selling pressure when large deposits to exchanges spike, a pattern that has played out in past cycles.
The price backdrop remains a mix of resilience and caution. After a month characterized by a steady ascent, the asset touched six-week highs near $76,000, underscoring renewed risk appetite among investors. Yet the on-chain Realized Price, which represents the average break-even price for active holders, sits well higher at approximately $84,700. This creates a ceiling effect, as the current price remains below the lower band of the realized-price metric, a zone historically associated with resistance during bear-market phases. Market data from TradingView show the asset testing the $75,000 mark on Coinbase multiple times in the past 24 hours, underscoring the psychological and technical significance of that level.
The broader market is anchored by expectations around the Federal Reserve’s policy stance. CME FedWatch data indicated a near-ceremonial stance for the March meeting, with markets pricing in a substantial probability of no rate change. The implications of the Fed’s decision—or even its language around rate paths—could influence liquidity cycles across crypto markets, where ETF interest, spot demand, and derivative positioning interact with macro risk sentiment. Associated Press reporting on the Fed’s trajectory highlights ongoing inflation concerns and the possibility that the central bank could refrain from rate cuts in the near term, a scenario that could shape risk-on versus risk-off temperament in the weeks ahead. CME FedWatch Associated Press
Looking forward, the market will likely calibrate its expectations around the Fed’s guidance and the pace of any potential policy normalization. Should the Fed acknowledge persistent inflation risks while signaling a cautious path, traders could see continued volatility as liquidity shifts between risk assets. Conversely, a more accommodating read could sustain the current momentum, allowing the rally to extend and on-chain inflows to reflect renewed demand rather than distribution. The next few sessions will be telling, as investors parse macro cues against the backdrop of on-chain indicators that have in the past proven prescient about fundamental shifts in supply and demand.
The joint decision is historic, but what does it mean specifically for your crypto portfolio?
For years now, the entire cryptocurrency industry has operated under a fog of regulatory uncertainty. Investors and developers alike were wondering which crypto asset the U.S. government might suddenly decide to classify as an unregistered security. Take Ripple’s XRP, for instance – one of the most obvious examples. The company was tangled in a prolonged lawsuit with the Securities and Exchange Commission, which lasted roughly half a decade, casting the shadow of ambiguity over an entire cohort of investors.
That era, however, effectively ended on March 17th, when the SEC, together with the Commodity Futures Trading Commission (CFTC), issued a landmark joint interpretive guidance.
The core takeaway, stated by the Chairman of the SEC, Paul Atkins, represents a true paradigm shift:
Most crypto assets are not themselves securities. – He said.
But while significant and historic, what does it all mean for the regular Joe? Here is a breakdown of what this decision means for your crypto portfolio, your staking yields, and your airdrops.
Staking and Airdrops: The Rules of Engagement
Staking and airdrops are perhaps two of the more common ways many retail crypto investors participate in decentralized networks. They have also historically been some of the biggest legal gray areas. The new joint guidance draws some clear and actionable lines for both of these.
First things first, for staking, the regulatory status would now depend on the structure of operation. If you are participating in protocol-level staking (read: locking up your tokens in order to secure a blockchain network like Ethereum, for example, and earning automated and pre-determined protocol rewards), this particular activity would generally fall outside of the scope of securities laws.
However, if you use a centralized, third-party service that pools investor funds and then promises a return based on its own managerial efforts, chances are regulators will still classify that yield product as a security (an investment contract).
You may also like:
Moving on to airdrops. These face a relatively similar test depending on context. Tokens that are distributed freely to a community, without requiring a financial investment or promising future profits based on the centralized team’s efforts, are currently a lot less likely to be classified as securities. On the other hand, if the airdrop is advertised and used explicitly to promote an investment opportunity, promising future returns based on the team’s efforts, it may still draw the scrutiny of the SEC.
A New Taxonomy for Digital Assets
If you’ve been around in crypto for a while, you know that there’s been an overlapping jurisdictional battle that has simply plagued the industry for years. The new joint guidance establishes a formal token classification framework. This taxonomy categorizes digital assets into distinct groups.
- Digital Commodities: These fall primarily under CFTC jurisdiction and concern assets that function primarily as a decentralized medium of exchange or store of value.
- Digital Collectibles: These are unique digital items and non-fungible tokens (NFTs).
- Digital Tools: These are utility tokens used to access or operate software applications or networks.
- Stablecoins: Digital assets pegged to fiat currencies.
- Digital Securities: Tokens that represent traditional investment contracts, equity, or profit-sharing agreements.
Essentially, by effectively separating the underying digital asset from the transaction itself, both regulators have provided a rather coherent roadmap for developers to build networks that are compliant without the constant fear of arbitrary enforcement.
Conclusion: What the SEC/CFTC’s New Guidance Means for Your Crypto
For everyday crypto investors, this guidance is a massive de-risking event. The Chairman of the CFTC said that the goal is to further foster an environment where the entire industry can flourish with “clear and rational rules of the road.”
Speaking practically, this means that major altcoins are much less likely to face sudden delistings from U.S. exchanges due to unexpected regulatory lawsuits or even the fear of them.
Moreover, it paves the way for a robust integration of digital assets into traditional finance – something that we have already seen starting to take shape. Recall that Mastercard enlisted Ripple, Binance, and other firms in a new crypto partnership, seeking to further integrate crypto into mainstream commerce.
Of course, the decision doesn’t necessarily guarantee the market success of any individual token, but at the very least it removes the heavy regulatory overhang that has suppressed US-based crypto markets (and arguably globally) for years.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
XRP (XRP) is trading just above a level heavily targeted by derivative traders, making it a critical zone for near-term price action.
The payments-focused cryptocurrency changed hands at around $1.50 at press time, placing just above a notable concentration of options activity at $1.40 on crypto exchange Deribit. XRP is used by Ripple to facilitate cross-border transactions.
Options are derivatives contracts whose value is derived from an underlying asset, in this case XRP. They give traders the right, but not the obligation, to buy or sell XRP at a specific price (known as the strike) before a set expiry date. Call options are typically used to bet on upside, while put options are used to hedge or speculate on downside.
As of writing, about $6.95 million worth of call option positions were open at the $1.40 strike, alongside $7.69 million in put positions at the same level. In total, that brings the value of outstanding or “open” contracts at this strike to roughly $14.6 million, or nearly 25% of all XRP options open on the exchange. Most of this open interest in concentrated in the March 27 expiry.
CoinDesk reached out to Deribit for a comment on the same.
This kind of clustering at a single strike is unusual and typically signals that the market is approaching a key inflection point.
As expiry approaches, this level may act as a magnet or gravitational price zone. Market makers, and traders who sold options at $1.40 and are “short gamma” could dynamically hedge their exposure, potentially pulling the price toward the strike. This phenomenon is widely referred to as “pinning.”
This concept is common in currency markets, where major currency pairs like EUR/USD often gravitate toward large strikes as expiry nears.
Traders, therefore, need to watch $1.40 level closely in the days ahead. A sustained move above it could leave much of the put-side open interest to expire worthless, while a drop below it could trigger hedging flows that amplify selling pressure.
Either way, the heavy concentration of options at this strike suggests that XRP’s short-term price action could be heavily influenced by how this open interest unwinds or gets settled.
Centralized crypto exchanges recorded a spike in Bitcoin hourly inflows on Monday as the crypto market rallied, with one analyst warning it could signal selling pressure.
Hourly Bitcoin flows into exchanges spiked to 6,100 BTC on March 16, the highest since Feb. 20, reported head of research at CryptoQuant, Julio Moreno, on Tuesday.
He added that the share of large inflows reached 63% of total inflows, which is the highest since mid-October 2025.
It comes as Bitcoin has rallied around 12% so far this month, hitting a six-week high of around $76,000 on March 17.
Traders often send Bitcoin (BTC) to exchanges in preparation to sell or exchange for stablecoins.
“Historically, spikes in large deposits to exchanges have been associated with increased selling pressure,” the analyst noted.
Fed may signal no rate cuts this year
The spike in exchange inflows comes just days before the Federal Reserve’s meeting and rate decision on Wednesday, which can have an impact on crypto sentiment.
However, markets have priced in no changes to the US interest rate this month, with CME futures predicting a 98.9% probability of them remaining the same and only a 1.1% chance that they will be increased.
Related: Trump ups pressure for Fed chair Powell to cut rates ‘right now’
The Fed could even signal no interest rate cuts at all this year in the wake of the US-Iran war and increasing inflation concerns, reported the Associated Press on Wednesday.
Bitcoin realized price resistance at $75,000
Moreno also noted that if Bitcoin continues to rally, it could first find resistance at $75,000.
“These levels represent the lower band of the traders’ onchain Realized Price, which historically acts as price resistance in bear markets,” he said.
The asset came just shy of $75,000 three times on Coinbase over the past 24 hours and hit resistance each time, according to TradingView.
The actual Realized Price, or the average break-even price for active traders, which acted as resistance in October and January, is currently around $84,700.
Magazine: Metaplanet’s Japan Bitcoin bet, Bithumb ordered suspension: Asia Express
The US Securities and Exchange Commission has cleared up longstanding ambiguity about how crypto assets should be treated.
The SEC issued an interpretation on Tuesday clarifying how federal securities laws apply to certain crypto assets and transactions involving cryptocurrencies.
This is a “major step in the Commission’s efforts to provide greater clarity regarding the treatment of crypto assets,” it stated. The guidance also “complements Congressional endeavors to codify a comprehensive market structure framework into statute.”
The Commodity Futures Trading Commission (CFTC) also joined the interpretation, confirming that it will apply the Commodity Exchange Act to crypto assets.
SEC: Cryptos Are Not Securities
The interpretation establishes a token taxonomy covering five categories: digital commodities, digital collectibles, digital tools, stablecoins, and digital securities.
The key takeaway is that most crypto assets are not classified as securities, which is the opposite of the previous Administration’s stance on them. SEC Chairman Paul Atkins stated:
“It also acknowledges what the former administration refused to recognize – that most crypto assets are not themselves securities.”
“After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the Commission treats crypto assets under federal securities laws,” he added.
After more than a decade of uncertainty, this interpretation will provide market participants with a clear understanding of how the SEC treats crypto assets under federal securities laws.
This is what regulatory agencies are supposed to do: draw clear lines in clear terms. https://t.co/wij5cA7N2i
— Paul Atkins (@SECPaulSAtkins) March 17, 2026
You may also like:
“For far too long, American builders, innovators, and entrepreneurs have awaited clear guidance on the status of crypto assets under the federal securities and commodity laws,” said CFTC Chairman Michael Selig.
“With today’s interpretation, the wait is over. Chairman Atkins and I are committed to fostering a regulatory environment that allows the crypto industry to flourish in the United States with clear and rational rules of the road.”
It also provides guidance on common crypto activities that have long existed in a legal gray zone, including airdrops, mining, staking, and asset wrapping.
Both Atkins and Selig framed this as a “bridge for entrepreneurs and investors” while Congress works on broader bipartisan market structure legislation.
“This is the biggest move toward legitimacy I’ve seen in all my time in crypto. Maybe bigger than the genius act since it covers all crypto assets,” commented crypto investor Ryan Sean Adams.
No Crypto Market Reaction
It seems that positive regulatory developments fail to move markets these days, as spot markets actually retreated by 1% over the past 24 hours.
Bitcoin tapped $74,800 three times over the past 12 hours or so but failed to break through, falling back to $74,350 at the time of writing.
Ether prices were tightly rangebound over the past 24 hours, trading at $2,333 on Wednesday morning in Asia.
The altcoins were a mixed bag, with gains for Tron and Hyperliquid, and losses for XRP, Stellar, and Canton.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
US Securities and Exchange Commission Chair Paul Atkins has proposed a “safe harbor” framework aimed at easing regulatory pressure on crypto firms while keeping them within the federal oversight structure.
Summary
- SEC Chair Paul Atkins proposes safe harbor exemptions to allow crypto firms to raise capital under defined regulatory pathways.
- Framework includes startup and fundraising exemptions, along with conditions for when tokens may fall outside securities laws.
Speaking at the DC Blockchain Summit in Washington, Atkins said, “such a safe harbor would provide crypto innovators bespoke pathways to raise capital in the US, while providing appropriate investor protections.”
Calls for similar safe harbor measures have previously been put forward by SEC commissioner Hester Peirce, who has long advocated for a tailored approach that gives crypto projects time to develop before being subject to full securities regulation.
Atkins proposed a “fit-for-purpose startup exemption” targeting early-stage projects, which would allow developers to raise limited capital without full securities registration before they are subject to standard compliance requirements.
He said the provision would give projects a “regulatory runway” to develop their networks before facing the full weight of compliance requirements.
To qualify, firms would need to provide “principles-based disclosures” through public channels, a model that aligns with the industry’s practice of publishing white papers and technical updates.
His proposal also outlines a “fundraising exemption” for more established projects.
This way, issuers would be able to raise up to $75 million within a 12-month period, while meeting more structured disclosure requirements, including financial documentation.
Further, Atkins introduced an “investment contract safe harbor,” aimed at addressing when a token should no longer be treated as a security.
“This safe harbor could apply once the issuer has completed or otherwise permanently ceased all essential managerial efforts that the issuer represented or promised that it would engage in under the investment contract,” Atkins said.
The provision looks to bring more certainty to how tokens are assessed as projects move toward decentralised structures.
According to Atkins, the SEC will soon put forward draft rules for public consultation, though he added that “only Congress can ensure that regulation in this area is future-proofed through comprehensive market structure legislation.”
The SEC chair’s comments came as the SEC and the Commodity Futures Trading Commission issued a joint interpretation outlining how crypto assets should be classified under federal law.
Atkins has clarified that “only one crypto asset class remains subject to the securities laws,” identifying it as “traditional securities that are tokenized.”
As covered by crypto.news, the SEC is also seeking public feedback on proposed changes to Rule 15c2-11, which would limit broker-dealer reporting requirements in over-the-counter markets to equity securities, easing concerns that the rule could extend to crypto assets.
Doctors didn’t think teen would survive ‘horrific’ injuries on holiday in Ibiza
Diesel fuel price surpasses $3-per-litre at Perth retailer
Alex Burghart: The Mandelson-Epstein scandal is far from over
-
Tech7 days agoA 1,300-Pound NASA Spacecraft To Re-Enter Earth’s Atmosphere
-
Crypto World4 days agoHYPE Token Enters Net Deflation as HyperCore Buybacks Outpace Staking Rewards
-
Fashion5 days agoWeekend Open Thread: Addict Lip Glow
-
Tech2 days agoYour Legally Registered ‘Motorcycle’ Might Not Count Under Proposed US Law
-
Sports4 days ago
Why Duke and Michigan Are Dead Even Entering Selection Sunday
-
NewsBeat7 days agoResidents reaction as Shildon murder probe enters second day
-
Business2 days agoSearch for Savannah Guthrie’s Mother Enters Seventh Week with No Arrests
-
Sports6 days agoPWHL, Senators discussing plan to keep Charge in Ottawa
-
Business7 days agoSearch Enters Sixth Week With New Leads in Tucson Abduction Case
-
Business4 days agoUS Airports Launch Donation Drives for Unpaid TSA Workers as Partial Government Shutdown Enters Fifth Week
-
Tech14 hours agoAre Split Spacebars the Next Big Gaming Keyboard Trend?
-
Crypto World4 days ago
Coinbase and Bybit in Investment Talks: Could Bybit Finally Enter the US Crypto Market?
-
NewsBeat7 days agoI Entered The Manosphere. Nothing Could Prepare Me For What I Found.
-
Business4 days agoCountry star Brantley Gilbert enters growing non-alcoholic beer market
-
Business2 days agoAustralian shares drop as Iran war enters third week
-
Crypto World2 days agoCrypto Lender BlockFills Enters Chapter 11 with Up to $500M in Liabilities
-
Sports4 days agoCollege Basketball Best Bets: Conference Tournament Semifinal Picks
-
Crypto World6 days agoThree Binance Charts May Be Hinting at Bitcoin’s Next Move
-
Business5 days agoTrump demands Powell cut rates as Iran conflict raises energy prices
-
Fashion2 days ago25 Celebrities with Curly Hair That Are Naturally Beautiful
You must be logged in to post a comment Login