Bitcoin Drops $2,600 After SEC Delays Tokenized Stock Exemption Plan

• Bitcoin fell by $2,600 in 24 hours as the SEC delayed tokenized stock trading exemptions.
• Over $500 million in long liquidations hit crypto markets during the Bitcoin decline.
• SEC concerns over investor rights slowed plans for tokenized U.S. stock trading.

Bitcoin recorded a sell-off against the U.S. dollar after reports emerged that the U.S. Securities and Exchange Commission had delayed a planned exemption framework for tokenized stock trading. The move led to heavy volatility across the crypto market, with Bitcoin falling around $2,600 within 24 hours as traders reacted to the regulatory uncertainty and liquidation pressure.

The decline erased approximately $55 billion from Bitcoin’s market capitalization, while more than $500 million in long positions were liquidated over the past 12 hours. Market data showed Bitcoin falling about 3.4% during the session, with consecutive red candlesticks dominating the chart and recording ongoing selling activity throughout the downturn.

At the beginning of the move, Bitcoin traded near the $77,800 level before sliding toward the $75,200 range. Small rebounds appeared during the decline, but buying momentum failed to hold as the broader bearish trend continued.

Related: Bitcoin Price Holds $75K as Options Traders Hedge Downside

The market reaction followed reports that the SEC postponed plans to release an exemption framework that would allow crypto firms to trade tokenized assets linked to publicly traded U.S. stocks.

According to a Bloomberg report, SEC staff had prepared a draft proposal and reviewed it internally ahead of a possible release this week. However, the timeline was reportedly delayed after discussions with stock-exchange officials and other market participants raised additional concerns about parts of the framework.

One area that reportedly drew attention involved third-party tokenized stocks issued without direct backing or authorization from the underlying public companies. The SEC has not formally changed the draft proposal, but discussions on its structure and investor protections continue.

Under the reported proposal, firms offering tokenized equities would be required to ensure investors receive rights comparable to traditional shareholders, including voting rights and dividend access.

Several former regulators reportedly questioned how those obligations would work in practice, given that blockchain-based tokens can be transferred between pseudonymous wallets without the standard shareholder registration systems.

Related: SEC’s Tokenized Stock Framework Could Fracture Wall Street’s Fee Monopoly Forever