Bitcoin Surpasses $107,000 After SEC Announces Plans to Revamp Cryptocurrency Regulations

Bitcoin was trading 4% higher at $105,585, having reached a day's high of $107,180. Ethereum, the second-largest cryptocurrency, increased by 2.8% to $3,322.

Bitcoin price rose 4% on Wednesday after the US Securities and Exchange Commission (SEC) announced plans to create a task force for regulating cryptocurrency markets.

Bitcoin was trading 4% higher at $105,585 by 01:03 ET (05:03 GMT), having hit a day’s high of $107,180.

Bitcoin hit an all-time high of $109,071 on Monday during President Trump’s inauguration, who has vowed to be a “crypto president.” However, the cryptocurrency retreated after Trump failed to mention crypto in a series of executive orders on his first day in office.

The SEC’s new leadership announced the formation of a task force for digital assets on Tuesday, in what was the Trump administration’s first major move on cryptocurrency policy.

The SEC unit will be tasked with creating a regulatory framework for digital assets, such as Bitcoin and stablecoins, and monitoring emerging threats in the crypto market.

“Following a brief dip, Bitcoin climbed over 4% as the SEC launched the ‘Crypto Task Force’ to devise a framework for digital assets. This initiative bolstered investor confidence in the Trump administration’s approach to crypto, despite the topic not being addressed during the inauguration,” said Edul Patel, CEO of Mudrex.

Patel added, “With Commissioner Hester Peirce, known for her pro-crypto stance, leading the task force, we can anticipate the development of a progressive regulatory framework.”

Bitcoin price hit an all-time high of $109,071 on Monday during President Trump’s inauguration, who has vowed to be a “crypto president.” However, the cryptocurrency retreated after Trump failed to mention crypto in a series of executive orders on his first day in office.

Recently launched tokens like OFFICIAL TRUMP and Melania Coin displayed mixed performance, with OFFICIAL TRUMP soaring 29% and Melania Coin rising 2% in the past 24 hours, despite previous declines of 42% and 70% respectively.

Bitcoin’s market capitalization stood at $2.092 trillion, maintaining a dominance of 57.55%, according to CoinMarketCap.