Bitcoin climbed as the Security and Exchange Commission (SEC ) on Tuesday said its acting Chair Mark Uyeda is creating a cryptocurrency taskforce to bring regulatory clarity to the industry. Bitcoin price was up 3% to 106,040 in recent trading. The announcements fueled further optimism that under the new administration, the regulatory burden for cryptocurrency assets will most probably be lower.
The SEC’s move on cryptocurrency regulations is aimed at “developing a comprehensive and clear regulatory framework for crypto assets.”
SEC crypto taskforce for regulatory changes
Bitcoin price has surged more than 50% since Trump’s election victory, with many expecting U.S. becoming the crypto capital of the world.
Uyeda succeeds Gary Gensler, who stepped down on January 20. Gensler was believed to be too aggressive in his oversight of crypto assets by few.
Bitcoin, the world’s largest cryptocurrency, approached the previous session’s record high on Tuesday in choppy trading as the top U.S. markets regulator unveiled a plan to overhaul rules for the sector.
Bitcoin price volatility
Hitting a record high of $109,071 on Monday when Trump was sworn in, but Bitcoin sank when crypto was not included in a flurry of on Day One. As of Tuesday afternoon, however, Bitcoin was up about 2.1% in the past 24 hours to $106,000, according to trading platform Kraken, near its record high. Ethereum, the second-largest cryptocurrency, gained 1.4% as the market shook off some of that disappointment.
SEC crypto enforcement
The SEC’s new leadership said on Tuesday said it had created a taskforce to develop a regulatory framework for digital assets.
Though few analysts are expecting volatility until concrete policies are announced for the crypto industry.
Acting SEC Chair Mark Uyeda’s office said on Tuesday the agency’s new task force would help to draw clear regulatory lines, provide paths to registration, craft disclosure frameworks and deploy enforcement resources.
SEC Commissioner Hester Peirce, one of the industry’s biggest defenders at the agency, will lead the task force, the agency said.
SEC targeting digital assets
Many have accused SEC of unfairly targeting digital assets. According to crypto advocates the decentralized nature makes it almost impossible to comply with securities regulations. Former Chair Gary Gensler brought lawsuits against trading platforms including Coinbase Global and Binance.
Expecting that the new bills 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. The industry views CFTC to be more friendlier than SEC. Since such a bill could take months or even years to pass, the SEC pulling back on new enforcement efforts was seen as critical.
Profit booking
Earlier on Tuesday, investors may have taken the opportunity to lock in profit after a spell of heady gains for cryptocurrencies.
“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 in the near future.
