Bitcoin’s value is nearing record levels amid a volatile trading session, driven by the US Securities and Exchange Commission (SEC)’s plan to revamp cryptocurrency regulations.
Bitcoin’s price movement followed the SEC’s announcement of a dedicated task force to overhaul digital asset regulations. The world’s largest cryptocurrency had earlier reached an all-time high of $109,071. The creation of this task force marks a significant step toward bringing structure to the cryptocurrency sector.
Acting SEC Chair Mark Uyeda, appointed by former President Donald Trump, emphasized the task force’s role. “The Task Force’s focus will be to help the Commission draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously,” Uyeda’s office stated.
Although this is a positive move, some analysts warn that the lack of immediate policy announcements could lead to further volatility. Geoffrey Kendrick of Standard Chartered stated, “The digital asset market is disappointed to not have been mentioned in the inauguration speech or Day One executive orders. I suspect Bitcoin will end up going lower so long as we get no news from Trump on digital assets. A break back below $100,000 seems inevitable.”
Paul Grewal, Chief Legal Officer at Coinbase, lauded the SEC’s initiative as a long-overdue step. “We’ve been asking for clear rules for years, and the answer was always ‘no.’ Today feels different,” Grewal said.
Industry leaders like Jonathan Jachym, Kraken’s global head of policy, also see this as a hopeful sign, calling it a “meaningful first step.” The task force will also aid lawmakers in crafting cryptocurrency-related legislation and coordinate with other federal and international bodies. This approach marks a shift from the previous administration’s regulatory stance.
Trump campaigned on supporting cryptocurrency adoption and dismantling previous restrictions. During the Biden administration, the SEC took enforcement actions against companies like Coinbase and Kraken over alleged securities law violations. Trump’s new administration is expected to issue executive orders that could reduce regulatory scrutiny of the cryptocurrency industry by allowing banks to trade cryptocurrencies and manage portfolios for wealthy clients.
Jeremy Allaire, CEO of Circle, believes these policy changes could “transform the industry.” Despite the optimism, the industry will still need to contend with challenges of market stability, enforcement actions, and global coordination. The SEC’s announcement is viewed as the end of the “regulation by enforcement” era, which could help companies innovate and expand without fear of crackdowns.
As Bitcoin nears record highs, the industry is awaiting President Trump’s next moves.
