Bitcoin Crosses $100K Threshold on News of Trump’s SEC Pick
Bitcoin’s price has exceeded $100,000 for the first time, a milestone for the digital currency.
The world’s most popular cryptocurrency was at a little over $103,000 Thursday (Dec. 5) morning, one day after President-elect Donald Trump said he would nominate a crypto advocate to lead the Securities and Exchange Commission (SEC).
As chair of the commission, Paul Atkins — himself a former SEC commissioner — would be in charge of an agency that has in recent years cracked down on the crypto sector.
“If the SEC under his leadership adopts a more cooperative crypto tone, it could unlock new opportunities for Web3 innovation. The shift comes at a critical moment, with several high-profile lawsuits — like those involving Coinbase and Ripple — reshaping how crypto companies operate in the U.S,” PYMNTS wrote Wednesday (Dec. 4) after Trump announced his pick.
“A regulatory framework that balances investor protection with the sector’s need for experimentation could establish the U.S. as a global hub for crypto — something the industry has been clamoring for.”
The price of bitcoin has been reaching record highs since Trump’s victory last month. The former and now incoming president had at one time called cryptocurrency a “scam,” but appeared to change course during his most recent White House bid, pledging to make the U.S. the “crypto capital” of the world.
“This is a momentum rally,” Jason Titman, chief executive of crypto brokerage Swyftx, told Bloomberg News after bitcoin crossed the $100,000 threshold.
“Global spot volumes are above mid-pandemic levels and the nomination of Paul Atkins as SEC chair just added to the carnival atmosphere.”
That report notes that bitcoin was just a couple hundred dollars away from reaching $100,000 on Nov. 22. Crypto fans, that report said, see the six-figure number as bolstering their arguments that bitcoin is a modern-day store of value and a way to protect against inflation. Critics, meanwhile, argue that these digital assets have no fundamental value and are at risk of the whims of speculators.
“Today’s milestone marks a turning point in Bitcoin’s journey from a niche asset to a mainstream financial instrument,” Binance Chief Executive Officer Richard Teng said in an emailed statement to Bloomberg.
Writing last month about what the future may hold for crypto under Trump, PYMNTS observed that deregulation carries some risks, especially if the boundaries around securities laws are pushed too far, triggering increased volatility in the market, putting unsophisticated investors at risk if they purchase unvetted or under-regulated digital assets.
“Crypto markets are inherently volatile, and the possibility of reduced oversight could amplify this characteristic,” that report said. “Deregulation may lead to significant speculative activity, potentially making the crypto market more susceptible to bubbles and crashes.”
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