Investing.com– Bitcoin rose on Wednesday, extending an overnight rebound after the Securities and Exchange Commission, under President Donald Trump, said it was preparing a new regulatory framework for crypto.
The news boosted confidence that Trump will deliver on his promises of crypto-friendly regulation, sparking gains across the sector. The President’s recently-launched memecoin, , also rose, although it traded well below its post-launch highs.
Crypto markets had initially fallen after Trump’s inauguration, as the 47th President made no mention of crypto in a flurry of executive orders issued on his first day in office.
rose 4.3% to $105,683.7 by 01:01 ET (06:01 GMT). The world’s biggest cryptocurrency hit a record high of over $109,000 just before Trump’s inauguration, but failed to hold those levels.
SEC unveils crypto task force to draft regulation
The SEC- under the leadership of acting Chair Mark Uyeda, who was appointed by Trump, said on Tuesday it had created a task force to help draft a regulatory framework crypto.
The task force will also help other government agencies draft crypto-related legislation, including the Commodity Futures Trading Commission.
Trump is also expected to issue executive orders that will reduce regulatory scrutiny of crypto, while bolstering the adoption of digital assets.
The President had campaigned on a pro-crypto stance, promising to make America the “crypto capital” of the world.
Trump’s leadership is expected to see the SEC drop its long-running lawsuits against several major crypto firms, including Coinbase (NASDAQ:) and .
Trump calls $TRUMP returns ‘peanuts’
Trump confirmed that he was behind the recently launched memecoin, but brushed off questions asking him about the token’s wild performance since Friday.
Speaking at a White House event, Trump told a reporter that he was not sure about the memecoin’s performance. When asked about the billions of paper gains it had added to his personal wealth, Trump said “several billion? That’s peanuts for these guys,” although it was not immediately clear who he was referring to.
While $TRUMP was initially received positively by traders, its subsequent volatility, and the less well received launch of $MELANIA sparked questions over the ethics of Trump using his influence to sway speculative assets in his favor.
Broader crypto market volatility also increased sharply after the launch of the memecoin.
$TRUMP traded up nearly 28% at $43.068 on Wednesday.
Crypto price today: altcoins rise tracking Bitcoin
Broader crypto prices advanced in lockstep with Bitcoin. World no.2 crypto rose 3.1% to $3,323.10, while rose 4.5%.
, , and added between 5% and 11%, while among memecoins, rose 9.1%.
