Following President Donald Trump's announcement that the
Securities and Exchange Commission was creating a new legal framework for
cryptocurrencies, Bitcoin increased on Wednesday, continuing its overnight
recovery.
Gains in the industry were sparked by the announcement, which increased
optimism that Trump would fulfill his pledges of crypto-friendly legislation.
$TRUMP, the President's newly established memecoin, increased as well, although
trading far below its peak after introduction.
Since the 47th President made no reference to cryptocurrency in his rush of
executive actions on his first day in office, cryptocurrency prices had
originally declined following Trump's inauguration.
The price of bitcoin increased 4.3% to $105,683.7 by 01:01 ET (06:01 GMT). Just
prior to Trump's inauguration, the largest cryptocurrency in the world reached
a record high of almost $109,000, but it was unable to maintain those levels.
A crypto task force is established by the SEC to create
regulations.
The SEC announced on Tuesday that it had established a task force to assist in
the creation of a regulatory framework for cryptocurrency, led by acting Chair
Mark Uyeda, who was chosen by Trump.
The task group will also assist the Commodity Futures Trading Commission and
other government organizations in drafting laws pertaining to cryptocurrency.
Trump is also anticipated to sign executive orders that would encourage the use
of digital assets and lessen regulatory scrutiny of cryptocurrencies.
The president had promised to make America the "crypto capital" of
the world during his pro-crypto campaign.
The SEC is anticipated to withdraw its long-running lawsuits against a number
of significant cryptocurrency companies, including Coinbase (NASDAQ:COIN) and
Ripple, under Trump's leadership.
Trump refers to the $TRUMP returns as "peanuts."
Trump denied being the creator of the newly formed $TRUMP memecoin, but also dismissed inquiries about the token's explosive growth since Friday.
Trump expressed uncertainty about the memecoin's performance to a reporter during a White House event. Trump said, "Several billion?," when asked about the billions in paper gains it had contributed to his personal riches. For these individuals, that's peanuts," though it wasn't immediately apparent to whom he was referencing.
Although traders initially viewed $TRUMP favorably, its subsequent volatility and the less well-received introduction of $MELANIA raised concerns about Trump's morality in using his power to influence speculative assets in his favor.
Following the memecoin's introduction, the volatility of the broader cryptocurrency market also skyrocketed.
On Wednesday, $TRUMP was up about 28% at $43.068.
Today's cryptocurrency price: altcoins are rising in tandem Bitcoin
The price of other cryptocurrencies rose in tandem with Bitcoin. Ether, the second-ranked cryptocurrency in the world, increased 3.1% to $3,323.10, while XRP increased 4.5%.
Dogecoin increased 9.1% among memecoins, while Solana, Cardano, and Polygon contributed 5% to 11%.
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