By Kingsley Ani
Bitcoin has climbed above $85,000 for the first time since January, reaching about $85,117 on Monday as renewed regulatory support for blockchain-based securities trading strengthened sentiment across the cryptocurrency market. The move came despite the US Federal Reserve’s recent 25-basis-point rate increase.
DEVELOPMENT
The rally has lifted Bitcoin to an eight-month high, while Ethereum also advanced, gaining 5.81 percent to $2,721.
A major catalyst has been the US Securities and Exchange Commission’s September 17 decision to grant a temporary, conditional five-year “Innovation Exemption” to certain platforms trading tokenised US stocks on blockchain-based venues. The framework permits qualifying venues to use permissioned automated market makers and liquidity pools, subject to investor-protection and market-integrity conditions.
The development marks a further integration of blockchain infrastructure with conventional capital markets rather than treating crypto as a completely separate financial ecosystem.
DATA
CoinMarketCap data showed the global cryptocurrency market capitalisation rising 5.1 percent to $2.88 trillion, with more than $106.24 billion in trading activity recorded by 12:30 pm.
Bitcoin’s latest advance follows substantial volatility. On October 10, 2025, it fell 8.4 percent to $104,782 after then-US President Donald Trump announced plans for 100 percent tariffs on Chinese exports and export controls on critical software, triggering widespread crypto liquidations.
SIGNIFICANCE
The latest move demonstrates the extent to which regulatory developments can influence crypto-market liquidity and investor sentiment.
The SEC’s framework requires tokenised stocks traded on qualifying venues to provide holders with the same rights and privileges as the underlying securities, while issuers can object to the listing of their shares. The exemptions are temporary and subject to trading, technology, disclosure and access conditions.
SEC Chairman Paul S. Atkins said the initiative is intended “to bring America’s capital markets into the digital age” by facilitating on-chain trading of certain tokenised stocks.
SEC Commissioner Mark T. Uyeda said tokenisation could modernise “issuance, trading, transfer, settlement, and recording ownership”, potentially reducing costs and improving transparency and liquidity.
NEXT MOVE
The key indicators will be whether Bitcoin can sustain its gains, whether institutional participation continues, and how quickly tokenised securities platforms develop under the SEC’s temporary framework.
OUR LENS
The deeper development is not simply Bitcoin crossing $85,000. It is the growing convergence between crypto infrastructure and mainstream securities markets.
The SEC exemption creates a controlled environment in which regulators can observe on-chain securities trading before determining longer-term rules. As Commissioner Hester M. Peirce put it, the exemptions allow market participants to “experiment” in preparation for a future in which tokenised stocks may become commonplace.
Bitcoin’s rally therefore sits within a broader repricing of the relationship between digital assets, regulation and conventional capital markets.
Kingsley Ani is a journalist who has over the years been covering capital markets, corporate results, economic and public-interest developments with a focus on clear, factual reporting.
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