Bitcoin, the world’s largest cryptocurrency, approached the previous session’s record high on Tuesday in choppy trading after the top US market regulator announced a plan to revamp the sector’s laws.
Bitcoin reached a record high of $109,071 on Monday when Trump, who has promised to be a “crypto president,” was sworn in, but fell when crypto was not included in a flurry on Day One.
Bitcoin prices jumped 3.8%, while Ethereum, the second-largest cryptocurrency, gained 1.4%, as the market recovered from some of its disappointment.
The new head of the Securities and Exchange Commission announced on Tuesday that it had formed a task group to design a regulatory framework for digital assets, marking Trump’s administration’s first big action to revamp crypto policy.
“The president has moved quickly on his agenda,” Coinbase Chief Legal Officer Paul Grewal said during a phone interview. “The SEC has made it clear they understand that and want to be a part of that.”
Some analysts have cautioned of volatility until Trump’s government announces specific rules that the crypto industry has long longed for.
“The digital asset market is disappointed not to have been mentioned in the inauguration speech or Day One executive orders,” said Geoffrey Kendrick, Standard Chartered’s global head of digital assets research.
“I believe Bitcoin will fall as long as Trump does not make any announcements regarding digital assets. A drop back below $100,000 appears unavoidable.”
Trump’s own $TRUMP-branded “meme coin,” which debuted on Friday evening, plummeted on Tuesday, according to cryptocurrency price tracker CoinMarketCap.
World Liberty Financial, a different Trump-linked cryptocurrency initiative, announced on Monday that it had completed an initial token sale for $300 million and will issue further tokens. Trump has committed to delegate asset management to his children, but ethics experts have slammed his cryptocurrency projects for creating conflict of interest issues and fueling speculation in a volatile asset class.
Acting SEC Chair Mark Uyeda’s office announced on Tuesday that the agency’s new task force will assist in drawing clear regulatory lines, providing registration pathways, developing disclosure frameworks, and deploying enforcement resources.
Reuters reported earlier this month that Uyeda and fellow Republican Commissioner Hester Peirce were preparing to launch the cryptocurrency policy change.
Trump is reportedly anticipated to announce executive orders in the coming days to further push Bitcoin use, according to Reuters and other media sites.
Jeremy Allaire, CEO of stablecoin issuer Circle, told Reuters Global Markets Forum at the start of this week’s World Economic Forum annual meeting in Davos that he expects imminent executive orders that will allow banks to trade cryptocurrency, offer crypto investments to wealthy clients, and hold it in portfolios.
