Crypto surges as Treasury doubles bond buybacks, SEC proposes regulation

Cryptocurrency surged on August 19 as two major policy announcements sparked optimism across digital asset markets. Bitcoin climbed to $69,000 and Ethereum jumped 10% as the U.S. Treasury announced it would double bond buybacks and the Securities and Exchange Commission proposed the first major regulatory framework for crypto assets.

The Treasury said it will increase long-term bond buyback operations to at least $4 billion per operation starting September 9, 2026, up from the current $2 billion maximum. The move targets 10-, 20-, and 30-year debt and aims to improve liquidity in the bond market as long-term yields have climbed sharply this year.

The expanded buyback program eased pressure on bond yields, with the 30-year Treasury yield plunging from 5.26% to as low as 5.18%, according to NBC News. Lower long-duration bond yields typically reduce competition for investor capital and can make risk assets like crypto more attractive.

Simultaneously, the SEC proposed “Regulation Crypto Assets” on August 18, creating a tailored securities offering regime for certain investment contracts involving crypto assets. The framework includes two exemptions: a one-time offering of up to $5 million during a four-year period, and offerings of up to $75 million per 12-month period, according to the SEC press release. Issuers would be required to provide narrative disclosures and, under the larger exemption, financial statements and ongoing reporting.