Bitcoin hit a record high of $100,000 on Wednesday, following President-elect Donald Trump’s announcement of key picks for his administration. The biggest news is his choice of Paul Atkins to lead the Securities and Exchange Commission (SEC).
Atkins is a former SEC commissioner and a strong supporter of cryptocurrency. His appointment is expected to bring a more relaxed approach to regulating cryptocurrencies compared to the current SEC chair, Gary Gensler, who has been tougher on the industry. Gensler, under the Biden administration, is set to step down on Inauguration Day.
Trump’s growing support for cryptocurrency is evident in his actions during the election. The crypto community played a major role in supporting Trump and the Republican Party, contributing about $131 million to pro-crypto candidates in congressional races.
Trump raised millions in cryptocurrency donations after his campaign started accepting them in May. With these new appointments, the crypto community is hoping for a shift toward more crypto-friendly policies, especially after the Biden administration’s more stringent approach.
In addition to nominating Atkins, Trump has also picked Howard Lutnick, CEO of Cantor Fitzgerald, who is a well-known supporter of Tether, one of the world’s largest cryptocurrencies.
Trump is also reportedly considering creating a new White House position dedicated entirely to crypto policy, which would further signal his commitment to the industry.
Despite Trump’s support, many financial regulators remain wary of cryptocurrency. Federal Reserve Chair Jerome Powell has called Bitcoin a “speculative asset,” comparing it to gold rather than a form of money.
Powell has said Bitcoin is not a competitor to the dollar but to gold. He also pointed out that he is not allowed to own cryptocurrencies due to his position.
Bitcoin’s price surge is largely fueled by the excitement surrounding Trump’s election victory. After Trump was projected to win on November 6, Bitcoin saw a $6,000 price jump in a single day, surpassing $74,000. Just a week later, Bitcoin reached $90,000.
The cryptocurrency has risen 130% this year, far outpacing the 28% gain of the S&P 500.
Trump, who once dismissed Bitcoin as “not money” and “highly volatile,” has shifted his stance in recent months. He began embracing cryptocurrency as he tried to attract younger voters, who tend to own more crypto.
Trump spoke at the largest crypto convention in Nashville, where he suggested creating a “strategic national bitcoin stockpile” and holding onto Bitcoin seized from criminals rather than auctioning it off, as is currently done.
In September, Trump launched his own cryptocurrency business, World Liberty Financial, and made headlines by buying burgers with Bitcoin at a Manhattan bar popular with crypto fans.
Trump’s media company, which owns Truth Social, is also reportedly in talks to acquire Bakkt, a crypto trading platform.
Trump’s growing support for cryptocurrency, alongside his key appointments, signals a major shift in U.S. policy.
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