SEC Drops Crypto Amid US Jobless Spike: Massive 2026 Bull Run Signal?
US Crypto Market Hit by Double Shock: Rising Jobless Claims and SEC Removing Crypto From 2026 Priority List
WASHINGTON — The U.S. crypto market experienced one of its most volatile days of the year after two major economic and regulatory developments collided within hours. A sharp rise in jobless claims, combined with a sudden omission of cryptocurrencies from the Securities and Exchange Commission’s (SEC) 2026 priority plan, triggered widespread liquidations and deepened the market downturn already underway.
The dual events sent shockwaves across digital asset markets, amplifying investor anxiety and raising new questions about the future of regulatory oversight under the changing political and economic landscape ahead of 2026.
Jobless Claims Rise to 232,000 as Labor Market Softens
Fresh labor market data indicated that U.S. jobless claims rose to 232,000 for the week ending October 18, 2025, surpassing economist expectations of 219,000. According to the latest breakdown referenced via an industry post shared on X, the numbers reflect a broader cooling in employment conditions following the federal government shutdown that began on October 1.
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| Source: Xpost |
The temporary shutdown led to the furlough of more than 800,000 federal employees, delaying government statistical reporting and slowing most administrative operations. Labor analysts say this backlog likely contributed to the delayed release of the report.
Here is the complete breakdown:
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Initial Claims: 232,000
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Previous Week: 220,000
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Market Expectation: 219,000
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Continuing Claims: 1.957 million
Economists warn that continued weakness in the labor market can reduce investor confidence, with ripple effects extending into risk-driven asset classes. Historically, higher jobless claims trigger market caution, prompting sell-offs in equities, commodities, and especially cryptocurrencies, which are often viewed as high-risk, high-volatility assets.
“The crypto market reacts faster to macroeconomic stress than most traditional asset classes,” analysts said. “A rise in claims of this scale signals slowing economic momentum, which reinforces investor fear and accelerates risk-off behavior.”
SEC Drops Crypto From 2026 Examination Priorities
In a separate development, the SEC released its 2026 Examination Priorities, and in a significant departure from previous years, digital assets were not included. This omission marks the first time the agency has excluded cryptocurrencies from its annual list of high-risk sectors—surprising both industry observers and regulatory analysts.
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| Source: Xpost |
Cryptocurrency advocates viewed the exclusion as a notable shift from earlier SEC leadership approaches, which frequently categorized digital assets as among the agency’s top areas of concern. According to an X post shared by a leading crypto market commentator, 2026 will instead focus on:
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Cybersecurity
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Fiduciary responsibilities
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Artificial Intelligence
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Anti–money laundering (AML) systems
The updated recommendations appear to align more closely with President Donald Trump’s stated pro-crypto stance. In January 2025, the administration announced a Strategic Bitcoin Reserve, signaling a broader embrace of digital assets at the federal level.
Market Interprets the SEC Shift in Two Opposing Ways
The removal of crypto from the SEC’s priority list has generated polarized reactions across industry circles. Analysts outline two competing interpretations:
1. Bullish Argument
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Crypto may no longer be viewed as a special threat or high-risk sector.
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Reduced regulatory pressure could encourage institutions to participate more actively.
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The omission may indicate that oversight is moving toward normalization rather than heightened scrutiny.
2. Bearish Argument
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The ongoing market crash may have reduced urgency from regulators.
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The SEC may be stepping back due to internal resource strain, rather than policy evolution.
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Silence from regulators could discourage retail investors who rely on oversight for market stability.
This divergence in interpretation is contributing to market uncertainty, fueling broader discussions about how the crypto landscape may evolve in 2026 and beyond.
Market Sentiment Turns to Extreme Fear
The combination of rising jobless claims and shifting regulatory tone sent the crypto market into deeper turmoil. According to market data referenced by hokanews, the industry is now facing:
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Global crypto market capitalization: $3.13 trillion (down 4 percent)
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Fear & Greed Index: 11 (Extreme Fear)
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Total liquidations (24h): $1.03 billion
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Number of traders liquidated: 189,977
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Largest liquidation: $96.51 million BTC-USD position on Hyperliquid
Major assets saw sharp declines:
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Bitcoin: dropped to $90,000
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Ethereum: fell to $3,062.40, a 4–6 percent range decline
Analysts say that large liquidations of this magnitude often indicate that leveraged traders are being forced out of positions, intensifying price declines and triggering a cascading effect across markets.
“Once liquidation volume crosses the billion-dollar threshold, it is hard for the market to stabilize immediately,” one market strategist noted. “Risk exposure spirals downward as more investors cut losses.”
Is 2026 Setting Up for a Different Crypto Landscape?
With both economic and regulatory signals shifting rapidly, financial experts are analyzing what the remainder of 2025 and early 2026 may hold for the digital asset sector. Several key themes are beginning to emerge.
1. Macro Forces Will Dominate Market Direction
Jobless claims are considered one of the leading indicators of U.S. economic health. If unemployment continues to rise, consumer confidence may fall further. For crypto, which thrives during periods of liquidity and positive sentiment, a weakening economy could drag prices lower.
However, if the Federal Reserve turns to monetary easing to stabilize the economy, digital assets could benefit. Historically, periods of lower interest rates boost crypto adoption due to cheaper borrowing costs and increased liquidity.
2. Market Needs Time to Absorb Losses
The $1 billion liquidation wave suggests that many leveraged traders have exited the market. Paradoxically, this can create a foundation for stability, as weaker positions are eliminated, leaving the market with stronger hands and longer-term investors.
If institutional interest increases due to potential regulatory relief, this could pave the way for gradual recovery. However, fear-driven sell-offs may continue in the near term.
3. Regulatory Reset May Be Structurally Bullish
Although the immediate market reaction has been volatile, some analysts argue the SEC’s updated stance could create long-term benefits:
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Reduced regulatory pressure
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Greater institutional participation
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A more defined regulatory environment
Still, much depends on how other federal agencies respond, and whether Congress enacts any new legislation related to digital assets in 2026.
Conclusion: Short-Term Pain, Long-Term Questions
The crypto market currently sits at a precarious intersection of macroeconomic instability and shifting regulatory priorities. With jobless claims rising and the SEC reprioritizing its oversight agenda, investors are navigating one of the most uncertain environments in recent memory.
While the omission of crypto from the SEC’s 2026 plan may ultimately prove supportive for long-term industry growth, short-term conditions remain heavily dependent on broader economic signals and market sentiment.
As the U.S. economy faces continued challenges, and with billions in crypto positions liquidated in just 24 hours, analysts caution that volatility is far from over.
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