What can we expect from the crypto market after the SEC and CFTC join forces?

Original Title: Crypto Just Got Its Rulebook. Here's Why That's Only Half the Story.

Original Author: Crypto Unfiltered

Translation by: Peggy, BlockBeats

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Editor's Note: On March 17, the SEC and CFTC jointly released an explanatory document that clearly states that most crypto assets are not securities for the first time and establishes a clearer classification framework. This change means that the biggest "uncertainty variable" in the crypto industry is being eliminated, and regulation is no longer a looming risk but a system of rules that can be understood and adapted to.

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

From the market performance perspective, Bitcoin has entered a range-bound fluctuation after reaching historical highs, reflecting the current core contradiction: the infrastructure for institutional entry is already in place, but capital allocation has not truly occurred; retail sentiment remains cautious, and the market lacks new forces to drive 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 on-chain," even evolving towards stock tokenization. As assets themselves begin to digitize, 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 are clear, and the path is gradually becoming evident. Next, the real phase of this game begins.

The following is the original text:

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On March 17, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly released a 68-page guidance document that officially classifies most crypto assets as non-securities. Among them, 16 tokens, including Bitcoin, Ethereum, Solana, and XRP, are explicitly identified as digital commodities. This is the first time in over a decade that developers, investors, and institutions in the U.S. have received the answers they have long awaited—what the rules actually are.

This is undoubtedly a significant event. But if you think that regulatory clarity itself is the most important event, you might be missing the point.

The more critical question is what will happen 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 U.S. can be summarized in one sentence: the SEC believes almost everything is a security, and almost no one has the ability to truly refute this because the cost of opposing regulatory agencies is extremely high.

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

The guidance also introduces the so-called attach-and-detach principle: a token may be classified as a security during the early financing stage, but once the project operates independently, this attribute can be lifted. In other words, project teams now have a compliance path that previously existed only at the theoretical level.

What’s most important here is not the technical details, but the signal itself. For the first time, regulators are directly answering questions rather than avoiding them. This opens the door for a wave of compliant funds that had been on the sidelines due to unclear rules.

Why Bitcoin is in a Range-Bound Fluctuation

Meanwhile, Bitcoin is in a state of observation. After breaking through the historical high of $109,000 earlier this year and maintaining a six-figure range for most of 2025, the price has corrected and is gradually seeking a new equilibrium. The macro environment plays a dominant role in this.

But the deeper issue lies in structural factors. Spot Bitcoin ETFs have absorbed a large amount of supply, but the vast majority of holders are still retail investors rather than institutions. According to CoinShares data, as of the first quarter of 2025, the Bitcoin ETF exposure held by institutions (13-F filers) is approximately $21 billion, down from $27 billion in the previous quarter. Meanwhile, although corporate treasuries have begun to allocate Bitcoin, the average allocation ratio on the advisory side is still less than 1% of the portfolio.

This is precisely where the current tension lies: the infrastructure needed for institutional entry has basically been completed, but real allocation behavior has not yet occurred.

Historically, retail funds that have driven crypto bull markets are now largely absent. Overall market sentiment remains cautious, and the cycle of fear and greed has not yet entered a sustained euphoric phase—which is typically a signal for market peaks. Before retail returns or institutions truly increase their positions, prices are likely to remain range-bound and highly sensitive to macro changes.

The Overlooked $100 Trillion Blind Spot

What most people truly underestimate is this part of the story.

The global wealth management industry manages approximately $100 trillion in assets, the vast majority of which is still allocated to traditional portfolios. The classic 60/40 model (60% stocks + 40% bonds) has been the default allocation for decades.

However, this model is facing substantial pressure. Against the backdrop of interest rate uncertainty, geopolitical turmoil, and the long-term depreciation trend of fiat currencies, the rationale for holding a large proportion of bonds is rapidly weakening. Gold has already responded to this, and Bitcoin is too. The long-held assumption of a 40% bond allocation is quietly becoming one of the most questioned parts of modern portfolios.

However, the response from the wealth management industry remains slow. Most registered investment advisors (RIAs) are still managing portfolios that are almost identical to those from five years ago. This is not because they believe crypto assets have no value, but because compliance frameworks, platform capabilities, and client education are still lagging behind reality.

But this situation is changing. The focus of discussion has shifted from "What is Bitcoin?" to "How can I provide these assets to clients under compliance?" Demand is real, and the infrastructure to meet this demand is gradually being built at this moment.

Tokenization is the Key Chapter

Tokenization is the next key chapter. The scale of tokenization of real-world assets (RWA) has grown from about $5 billion in 2022 to over $24 billion today, a 380% increase over three years. Private credit dominates this space, followed by tokenized U.S. government bonds. Several large institutions, including BlackRock, Franklin Templeton, and Goldman Sachs, have begun issuing tokenized products on public chains.

The next step is the tokenization of stocks. Robinhood has launched a tokenized version of U.S. stocks for European users in 2025. As the regulatory framework gradually clarifies, similar products are likely to enter the U.S. market. Once this process begins, the boundaries between traditional brokerage accounts and crypto wallets will start to disappear. Whether investors realize it or not, every portfolio will gradually evolve into a digital asset portfolio.

These assets can be traded 24/7, can serve as collateral in decentralized lending protocols, and can be held, staked, lent, 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

While regulatory clarity is undoubtedly important, it should be viewed as a prerequisite rather than a true catalyst. The real turning point will occur when wealth management institutions begin to allocate client funds on a large scale—yet that moment has not yet arrived.

Before that, macro factors remain key variables. The liquidity environment, the strength of the dollar, and interest rate expectations are still the core factors influencing Bitcoin's price in the short term. The logic of fundamentals is continuously accumulating, but when prices will respond remains uncertain.

The rules have been written. Next, it’s time to take the stage.