Bitcoin gains as US SEC unveils task force to tackle crypto regulations – Crypto News – Crypto News
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Bitcoin gains as US SEC unveils task force to tackle crypto regulations – Crypto News

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Bitcoin made headlines on Tuesday as it flirted with record highs in a volatile trading session.

The buzz came after the US Securities and Exchange Commission (SEC) announced plans to create a task force aimed at reshaping the regulatory landscape for digital assets.

The cryptocurrency hit a huge $109,071 on Monday, coinciding with Donald Trump’s inauguration as the self-proclaimed “crypto president.” But the excitement dimmed quickly when cryptocurrencies failed to make the cut in the flurry of executive orders signed on Day One. Even so, Bitcoin managed to bounce back, gaining 3.8%, while Ethereum, the second-largest cryptocurrency, rose 1.4%.

In a press release on Tuesday, the SEC revealed its intentions to create clearer rules for digital assets under its new leadership. Acting SEC Chair Mark Uyeda explained that the task force’s goals include defining regulatory boundaries, offering pathways for registration, and creating disclosure frameworks. “It’s all about bringing clarity to a rapidly evolving space,” Uyeda’s office shared.

Paul Grewal, Coinbase’s chief legal officer, praised the action, calling it a long-overdue step. “We’ve been asking for clear rules for years, and the answer was always ‘no.’ Today feels different,” Grewal said.

Yet, not everyone in the cryptocurrency world is convinced. Analysts like Geoffrey Kendrick of Standard Chartered warned against too much optimism. “The market wanted something concrete from Trump’s first actions, but the silence on crypto in his early moves suggests more volatility ahead,” Kendrick said. He predicted that if there are no further updates, Bitcoin might dip below $100,000.

Trump has become a divisive figure in the cryptocurrency space. His freshly established $TRUMP meme coin has already lost value, raising concerns about potential conflicts of interest in his cryptocurrency businesses. On Monday, World Liberty Financial, another Trump-linked cryptocurrency initiative, raised $300 million in an inaugural token sale, raising debates about the sector’s ethics.

At the World Economic Forum in Davos, Circle CEO Jeremy Allaire expressed optimism that upcoming executive orders could reshape the industry. He hinted at potential moves allowing banks to trade cryptocurrencies, manage investments for high-net-worth clients, and include digital assets in portfolios. “These could be game-changing developments for the industry,” Allaire said.

The SEC’s announcement comes as part of Trump’s broader effort to undo stricter cryptocurrency regulations introduced during Joe Biden’s presidency. Biden’s SEC came under fire for its aggressive enforcement actions against companies like Coinbase and Kraken. Industry leaders have said consistently that existing regulations are unsuitable for digital assets and have advocated for a more specialised approach.

The new task force is expected to work closely with lawmakers drafting cryptocurrency legislation and coordinate with agencies like the Commodity Futures Trading Commission. Jonathan Jachym, Kraken’s global head of policy, expressed his optimism for the future, describing the SEC’s move as “a meaningful first step toward clarity.”

For the time being, the cryptocurrency world is holding its breath, waiting to see if Trump’s promises will actually lead to tangible policy changes. Until then, investors and industry insiders anticipate a rough journey.

(Photo by Unsplash)

See also: Donald Trump’s memecoin spikes ahead of inauguration

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Tags: Bitcoin, blockchain, crypto

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