Bitcoin extended its rally on Thursday, building on an overnight rebound fueled by optimism over Donald Trump’s potential crypto-friendly policies as he prepares to take office.
The cryptocurrency moved closer to the $100,000 milestone after recovering from last week’s failed attempt to breach the level, during which traders took profits. Despite recent volatility, Bitcoin remains up over 100% in 2024, rising 3.1% to $95,645.00 as of 00:31 ET.
Shift in Crypto Oversight to CFTC from SEC: Fox Report
According to Fox Business, Trump’s administration is reportedly planning to transfer much of the crypto regulatory oversight from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). The CFTC, which regulates the U.S. derivatives market, is considered less stringent than the SEC.
This shift is expected to provide relief to the crypto industry, which has faced heavy SEC scrutiny in recent years. The SEC’s regulatory actions have shaken investor confidence and led to steep losses in crypto prices since 2022. XRP, issued by Ripple—embroiled in a long-standing lawsuit with the SEC—jumped over 7% on Thursday following the news.
Trump Considering Pro-Crypto Candidate for SEC Chair
Bloomberg reported that veteran financial regulator Paul Atkins is among the top contenders to replace SEC Chair Gary Gensler when Trump assumes office. Atkins, a supporter of digital assets, is expected to bring a more favorable regulatory approach compared to Gensler, who has faced criticism for his enforcement-heavy stance on crypto.
In addition to considering Atkins for the SEC, Trump has reportedly nominated pro-crypto figures for key positions, including Treasury Secretary and Commerce Secretary, signaling a potential policy shift in favor of the industry.
Limited Scope for Bitcoin Strategic Reserve
Despite the optimism, Compass Point Research cautioned that Trump’s plan for a Bitcoin strategic reserve might face significant roadblocks. The Treasury is unlikely to approve additional deficit-driven funding to purchase Bitcoin, and Congress, with its slim Republican majority, is unlikely to support increased fiscal spending on cryptocurrency.
Compass Point also dismissed the BITCOIN Act, introduced by Senator Cynthia Lummis, as a “nonstarter.”
Altcoins Rally Alongside Bitcoin
The broader cryptocurrency market mirrored Bitcoin’s gains on Thursday. Ether, the second-largest cryptocurrency, rose 5.1% to $3,572.13, while Solana, Cardano, and Polygon gained 4.2%, 5.2%, and 4%, respectively. Meme token Dogecoin also advanced, climbing 4.3%.
