While Bitcoin and Ethereum have steadied a little ahead of major events scheduled for the end of this week, the SEC's initiative to modernize rules for custodial storage of digital assets has become the agency's second major regulatory move in two weeks on a track running parallel to Congress.

The proposal, titled "Amendments to Custody Rules," was submitted to the White House Office of Management and Budget (OMB) on August 25. The full text will be made public only after the OMB review is completed, after which the commission itself will vote, and the draft will be opened to a minimum 60?day public comment period. October is being cited as the target date for formally publishing the proposal and launching the SEC's public comment period.

Recall that back in 2023, under Chair Gary Gensler, the Securities and Exchange Commission tried to tighten custody rules by requiring investment advisers to place clients' crypto assets only with a narrow group of "qualified custodians" — effectively banks, broker?dealers or CFTC?regulated futures market participants. Gensler warned the industry that crypto platforms in their then?current form could not be considered qualified custodians. That attempt failed, leaving advisers with very few legal ways to hold clients' digital assets. The SEC withdrew the strict version of the rule in June 2025 and has now returned to the issue with a very different approach.

The fact that this proposal appeared exactly one week after the public unveiling of the "Regulation Crypto Assets" package shows that SEC Chair Paul Atkins is methodically closing one regulatory gap after another, without waiting for the outcome of the vote on the CLARITY Act — a prospect that, after being pushed to September and following a collapse in Galaxy Digital's forecasts to 10%, remains highly uncertain.

Trading recommendations

Bitcoin Buyers are currently targeting a return to $78,800, which would open a direct path to $80,100, and from there toward $81,800 — a break above which would signal attempts at a return to a bullish market. On the downside, buyers are expected at $77,200. A drop below that area could quickly push BTC toward $75,300. The furthest target on the downside would be around $72,900.

Ethereum A clear hold above $2,513 would open a direct route to $2,595. The furthest upside target would be the high near $2,684; a break above that would indicate strengthening bullish sentiment and a return of buyer interest. On the downside, buyers are expected at $2,436. A return of the instrument below that area could quickly push ETH toward $2,373. The furthest downside target would be around $2,320.

What's on the chart

• The red lines represent support and resistance levels, where the price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.