Investing.com — Bitcoin rose on Thursday, extending an overnight rally amid growing confidence that President Donald Trump's incoming administration will impose crypto industry-friendly regulations.
Bitcoin failed to break above that level last week, but overnight gains pushed it back towards the coveted $100,000 level. Bitcoin then posted significant losses as traders locked in recent gains, but the cryptocurrency still traded up more than 100% year to date in 2024.
Shares rose 3.1% to $95,645.0 by 12:31 a.m. ET (5:31 p.m. Japan time).
President Trump moves cryptocurrency regulation from SEC to CFTC – Fox
The Trump administration wants to transfer much of its oversight of cryptocurrency regulation from the Securities and Exchange Commission to the Commodity Futures Trading Commission, FOX Business reported Wednesday.
The CFTC oversees the U.S. derivatives market and is seen to have less stringent regulatory standards than the SEC.
The change in regulatory authority comes as some relief to the crypto industry after the SEC has stepped up enforcement of alleged bad actors in the industry over the past two years. Regular SEC enforcement actions have also shaken investor confidence in the industry, causing a sharp decline in crypto prices since 2022.
Shares rose more than 7% on Thursday as the company's issuer is embroiled in a lengthy lawsuit with the SEC.
Trump pays close attention to crypto-friendly SEC chairman candidate
Veteran financial regulator Paul Atkins has been one of the top candidates to replace SEC Chairman Gary Gensler starting in January, Bloomberg reported Wednesday.
Atkins, who was reportedly interviewed by Trump's team, is a supporter of digital assets and is expected to take a much friendlier approach to regulation than Gensler.
Gensler, who has said he will step down when Trump takes office next year, has been criticized by crypto advocates for regulating the industry through enforcement.
The report that Mr. Atkins was being considered for the position of SEC chairman was also reported when President Trump selected candidates with pro-cryptocurrency positions to serve as Secretary of the Treasury and Secretary of Commerce.
President Trump's Bitcoin Strategic Reserve Outlook Limited – Compass Point
However, despite optimism regarding President Trump's executive plans for cryptocurrencies, Compass Point Research maintained that the president-elect's plans for the Bitcoin Strategic Reserve are limited in scope.
The Treasury Department is unlikely to approve further deficit-based funding for the government to buy Bitcoin, but the Republican-controlled Congress also has the potential to widen the U.S. budget deficit to buy cryptocurrencies. would be reluctant to do so.
Compass Point also calls the Bitcoin legislation proposed by Sen. Cynthia Lummis a “non-starter.”
Crypto prices today: Altcoins track Bitcoin’s rise
Prices of a wide range of cryptocurrencies rose in parallel with Bitcoin on Thursday. The world's second-largest cryptocurrency rose 5.1% to $3,572.13.
4.2% increase, 5.2% increase, 4% increase. Meme tokens rose 4.3%.
