Investing.com– Bitcoin rose on Thursday, extending an overnight rebound amid growing conviction that Donald Trump’s incoming administration will entail friendlier regulations for the crypto industry.
Overnight gains saw Bitcoin move back towards the coveted $100,000 level, after the crypto failed to breach the level last week. Bitcoin had then logged steep losses as traders locked in recent profits, although the crypto was still trading up over 100% so far in 2024.
Bitcoin rose 3.1% to $95,645.0 by 00:31 ET (05:31 GMT).
Trump to shift crypto regulation to CFTC from SEC- Fox
Trump’s administration wants to shift a bulk of crypto regulatory oversight to the Commodity Futures Trading Commission from the Securities and Exchange Commission, Fox Business reported on Wednesday.
The CFTC oversees the U.S. derivatives market, and is seen as having less strict regulatory standards than the SEC.
A shift in regulators marks some relief for the crypto industry, after the SEC embarked on a regulatory crusade against alleged bad actors in the industry over the past two years. Regular SEC enforcement had also rattled investor faith in the industry, sparking steep losses in crypto prices since 2022.
XRP– whose issuer Ripple has been embroiled in a long-running lawsuit with the SEC- rallied more than 7% on Thursday.
Trump eyes pro-crypto candidate for SEC Chair
Veteran financial regulator Paul Atkins is among the top contenders to replace SEC Chair Gary Gensler from January, Bloomberg reported on Wednesday.
Atkins, who was reportedly interviewed by Trump’s team, is a proponent of digital assets, and is expected to adopt a much friendlier approach to regulation than Gensler.
Gensler, who said he will resign as Trump takes office next year, has been criticized by crypto proponents for regulating the industry through enforcement.
Reports of Atkins’ consideration as SEC chair also came as Trump picked candidates with pro-crypto stances to head the Treasury and as the Secretary of Commerce.
Trump’s Bitcoin strategic reserve has limited prospect- Compass Point
But despite optimism over Trump’s administrative plans for crypto, Compass Point Research argued that the President-elect’s plans for a Bitcoin strategic reserve had limited scope.
The Treasury was unlikely to approve more deficit-driven funding for the government to buy Bitcoin, while Congress- where the Republican party has a small majority- will also be unwilling to increase the U.S. fiscal deficit to purchase crypto.
Compass Point also called the BITCOIN Act, proposed by Senator Cynthia Lummis- a “nonstarter.”
Crypto price today: altcoins track Bitcoin rally
Broader cryptocurrency prices advanced in tandem with Bitcoin on Thursday. World no.2 crypto Ether jumped 5.1% to $3,572.13.
Solana rose 4.2%, Cardano added 5.2% while Polygon rose 4%. Among meme tokens, Dogecoin rose 4.3%.
