SEC Proposes New Crypto Framework Amid $1.5B Bybit Loss

June 23, 2025

What to Know:

SEC proposes new crypto framework amidst Bybit’s significant financial loss.
Framework to clarify crypto regulatory status, gather public feedback.
Bybit suffers $1.5B loss impacting the crypto market.

sec-proposes-new-crypto-framework-amid-1-5b-bybit-loss — SEC Proposes New Crypto Framework Amid $1.5B Bybit Loss

The SEC, led by Acting Chair Mark Uyeda, proposed a new crypto framework on February 21, 2025, following Bybit’s $1.5 billion loss.

The framework aims to clarify the securities status of crypto assets and encourage public input, amid market volatility and institutional shifts.

SEC Targets Crypto Regulation After Bybit’s $1.5B Loss

The SEC’s new framework aims to clearly define when crypto assets fall under securities laws. Hester Peirce emphasized modernization and innovation, unveiling the proposal amid recent financial turmoil.

Bybit’s $1.5 billion loss highlighted sector vulnerabilities. The framework seeks public feedback to guide future regulatory standards, signifying a shift towards more transparent guidelines.

Crypto Markets React to New SEC Framework Proposal

The Bybit loss and framework proposal have impacted global markets, causing volatility in BTC and altcoins. The crypto community is cautious, reflecting the industry’s delicate state.

Financial analysts observe potential shifts in institutional adoption, as the SEC aligns with less adversarial policies. Political analysts note the emphasis on stablecoins over CBDCs.

Lessons from Terra and FTX: SEC Actively Responds

This event mirrors the 2022 collapses of Terra and FTX, which also triggered regulatory scrutiny and market disruption. The current proposal may prevent similar failures.

Experts predict that regulatory clarity could lead to increased institutional engagement and market stability, if historical trends of recovery and adaptation hold true.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.

John Kojo Kumi

John Kojo Kumi is a seasoned cryptocurrency and blockchain writer celebrated for his in-depth analysis of emerging startups, tokenomics, and crypto market trends. With a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, John offers a unique perspective that integrates academic knowledge with industry expertise.

Throughout his career, John has made significant contributions to Crypto News Flash, ZyCrypto, and Coinstaker Media, where he sharpened his skills in crypto journalism and blockchain analysis. Now at Bitcoininfonews.com, he provides comprehensive coverage of cryptocurrencies, DeFi, NFTs, and Web3, equipping readers with the insights needed to navigate the fast-paced blockchain ecosystem. His expertise in content management, SEO, and thorough research makes his work a trusted resource for the global crypto community