Crypto Market Shaken as Bitcoin Sinks to $115K Following Blocked Trump-Backed Bills; SEC Issues ETP Guidance

2025-07-16 13:01:26 ET

Bitcoin plunged to $115,222 on Tuesday , falling sharply after three cryptocurrency-related bills backed by President Donald Trump were unexpectedly blocked in the House of Representatives. The failed procedural vote, which saw 13 Republican lawmakers break party lines and side with Democrats, triggered a swift sell-off across the crypto market.

The bills, designed to regulate stablecoins, clarify regulatory oversight between the SEC and CFTC, and block the Federal Reserve from launching a central bank digital currency (CBDC), were halted with a 196-223 vote. Their collapse disrupted growing investor optimism that had fueled Bitcoins recent all-time highs and rekindled hopes for legislative clarity in the digital asset space.

Altcoins and crypto-linked equities were also caught in the downturn. Ethereum, XRP, and Solana- SLNH recorded losses of 1-2%, while publicly traded firms like Riot Platforms- RIOT (-3.3%), Marathon Holdings- MARA (-2.3%), Coinbase- COIN (-1.5%), and Circle- CRCL (-5%) slid during and after trading hours. Data from CryptoQuant revealed that Bitcoin holders pulled $3.5 billion from the market in the past 24 hours, with a majority of the withdrawals coming from long-term wallets.

The votes outcome marked a setback for crypto legislation advocates, especially since one of the bills, the GENIUS Act, which would establish a national framework for stablecoins, had already passed the Senate. Another bill, the CLARITY Act, aimed to determine whether cryptocurrencies fall under the SEC's or CFTC's jurisdiction. A third proposal would have prohibited the Federal Reserve from issuing a digital dollar.

While House leadership suggested a revised vote may come, no timeline or path forward has been confirmed. Nothing's finalized yet, said Republican Representative Nancy Mace, one of the lawmakers who supported the original motion.

SEC Issues Guidance for Crypto Asset ETPs

Amid the market volatility, the U.S. Securities and Exchange Commission (SEC) released a staff statement providing detailed guidance on disclosure requirements for crypto asset exchange-traded products (ETPs). The statement, issued by the SEC's Division of Corporation Finance, outlines how the Securities Act of 1933 and the Securities Exchange Act of 1934 apply to crypto ETPs and signals a growing willingness by the SEC to accommodate a broader range of digital asset-based financial products.

Key aspects of the guidance include:

Tailored Disclosures: Issuers must provide disclosures specific to the product, underlying crypto asset(s), and business operations, rather than relying on boilerplate language.

Risk Transparency: Issuers are expected to detail material risks such as market manipulation, private key theft, hacking incidents, and network vulnerabilities.

NAV and Valuation: Disclosure should cover methodologies used to calculate net asset value (NAV), especially in the context of volatile and fragmented crypto markets.

Service Providers and Custody: ETPs must disclose agreements and relationships with custodians and service providers, including storage methods and insurance arrangements for digital assets.

Index and Benchmark Practices: ETPs tracking an index must explain index construction, selection criteria, and any sponsor influence over benchmark changes.

Plan of Distribution and Management: Issuers should clarify mechanics behind creation/redemption of shares, the role of authorized participants (APs), and potential conflicts of interest with affiliated entities.

 

Although the statement does not create new rules, it reinforces the SEC staff's expectations and may pave the way for ETP approvals beyond Bitcoin and Ethereum, with filings for Solana, XRP, DOT, and others already under review.

This new SEC guidance comes as crypto market participants continue to push for product innovation and regulatory certainty. While actively managed crypto ETPs were not directly addressed, the statement offers valuable direction applicable to a broad array of digital asset offerings.

The post Crypto Market Shaken as Bitcoin Sinks to $115K Following Blocked Trump-Backed Bills; SEC Issues ETP Guidance appeared first on PRISM MarketView .

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