Investing.com– Bitcoin rose on Wednesday, extending an overnight rally after the Securities and Exchange Commission, under President Donald Trump, said it was preparing a new regulatory framework for the crypto.
The news boosted confidence that Trump would follow through on his promises of cryptocurrency-friendly regulation, sparking gains across the sector. The president’s recently launched memecoin, , also rose, although it was trading well below post-launch highs.
Crypto markets initially fell after Trump’s inauguration, as the 47th president did not mention 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 (0601 GMT). The world’s largest cryptocurrency hit a record high of over $109,000 just before Trump’s inauguration, but has failed to sustain those levels.
The SEC presents a crypto regulatory task force
The SEC—led by Trump-appointed Acting Chairman Mark Uyeda—said Tuesday it has formed a task force to help craft a regulatory framework for crypto.
The task force will also assist other government agencies in drafting crypto-related legislation, including the Commodity Futures Trading Commission.
Trump is also expected to issue executive orders that will reduce regulatory oversight of cryptocurrencies while boosting the adoption of digital assets.
The president 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 long-running lawsuits against several major crypto companies, including Coinbase (NASDAQ: ) and .
Trump calls $TRUMP refunds ‘peanuts’
Trump confirmed he was behind the recently launched memecoin, but brushed off questions about the token’s wild performance since Friday.
Speaking at a White House event, Trump told a reporter that he was unsure about memecoin’s performance. When asked about the billions in paper winnings it added to his personal wealth, Trump said “a few billion? That’s peanuts to these guys,” though it wasn’t 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 have raised questions about the ethics of Trump’s use of his influence to turn speculative assets to his advantage.
The broader crypto market volatility also increased sharply following the launch of memecoin.
$TRUMP rose nearly 28% to $43.068 on Wednesday.
Crypto Price Today: Altcoins Rise Following Bitcoin
Broader cryptocurrency prices have advanced in step with Bitcoin. The world’s No. 2 cryptocurrency rose 3.1% to $3,323.10, while gaining 4.5%.
and added between 5% and 11%, while among memecoins it rose 9.1%.
