President Donald Trump's first day in office may have left crypto bills feeling underwhelmed. But the second day is giving reason to cheer.
Securities and Exchange Commission acting chairman Mark Uyeda on Tuesday said the agency would launch a "crypto task force" to develop a regulatory framework for digital assets. The group will give paths to registration for crypto products, create disclosure requirements, and "deploy enforcement resources judiciously," the SEC said.
SEC Commissioner Hester Peirce, one of the industry's biggest defenders at the agency, will lead the task force, the agency said.
Bitcoin and other digital assets started Tuesday lower after Trump's first day in office failed to include any actions on cryptocurrencies. As of Tuesday afternoon, however, Bitcoin was up about 3.7% in the past 24 hours to about $106,000, near its record high.
It's not a surprise that the Trump administration would launch a crypto task force. But it was something of a surprise that one got underway while Paul Atkins, Trump's nominee to head the Securities and Exchange Commission, waits to be confirmed.
Crypto proponents have long accused the SEC of unfairly targeting digital assets, arguing that their decentralized nature makes it impossible to comply with securities regulations. Former Chair Gary Gensler brought lawsuits against trading platforms including Coinbase Global and Binance. Crypto executives believe Trump's election could bring those and other enforcement actions to a swift conclusion.
Industry advocates expect Congress to soon put forward bills that would clarify regulation in the industry, potentially moving most crypto regulation outside of the purview of the SEC to that of the Commodity Futures Trading Commission, which the industry views as friendlier. Since such a bill could take months or even years to pass, given the tight congressional calendar and more pressing issues such as tax reform, the SEC pulling back on new enforcement efforts was seen as critical.
Still, the announcement wasn't enough to save the Official Trump token, which as of Tuesday afternoon hovered at about $39.63, down 4% over the past 24 hours, according to Kraken. The token, launched by the Trump family along with a similar Melania meme coin, has come under fire in some crypto circles for seeming to be a transparent cash grab.
"Please fire whoever recommended going forward with the Melania launch today," wrote Trump supporter and Messari founder Ryan Selkis in a post on X.
Trump's inauguration day ended up being a nonevent for cryptos. The 47th president signed a flurry of executive orders, none of which addressed the digital-asset sector. Trump has burnished his crypto-friendly credentials over the election cycle and repeatedly promised on the campaign trail to set up a strategic Bitcoin reserve.
Investors may also have been taking the opportunity earlier Tuesday to lock in profit after a spell of heady gains for cryptos.
"The retreat looks like little more than profit-taking after its recent rally, with traders balancing optimism over growing institutional adoption against caution around regulatory uncertainties," Hargreaves Lansdown analyst Matt Britzman said in a research note. "Despite the dip, sentiment remains strong as the market eyes more favorable conditions with Trump in office."
Comments