Bitcoin soared to a record high of $100,000 on Wednesday, fueled by President-elect Donald Trump’s announcement of key picks for his administration, signaling a shift toward more crypto-friendly policies. The most notable move is Trump’s choice of Paul Atkins to lead the Securities and Exchange Commission (SEC).
Atkins, a former SEC commissioner, is known for his strong support of cryptocurrency. His appointment is expected to ease regulatory pressures on the industry, contrasting with the more stringent approach of current SEC chair Gary Gensler, who is set to step down on Inauguration Day. This change in leadership comes as part of a broader trend of Trump’s increasing support for cryptocurrency, which has gained significant backing from the crypto community.
During his campaign, Trump accepted millions in cryptocurrency donations and received strong support from the crypto sector, contributing $131 million to pro-crypto candidates in congressional races. With these new appointments, the crypto community is optimistic about a more relaxed regulatory environment, especially following the Biden administration’s tougher stance on the industry.
In addition to nominating Atkins, Trump has also tapped Howard Lutnick, CEO of Cantor Fitzgerald, a vocal supporter of Tether, one of the largest cryptocurrencies. Furthermore, Trump is reportedly considering establishing a new White House position dedicated entirely to crypto policy, further emphasizing his commitment to the industry.
Despite Trump’s support, many financial regulators, including Federal Reserve Chair Jerome Powell, remain skeptical of cryptocurrencies. Powell has referred to Bitcoin as a “speculative asset” and compared it to gold, rather than a legitimate form of currency. He has also noted that he is prohibited from owning cryptocurrencies due to his position.
The surge in Bitcoin’s price can be attributed to the optimism surrounding Trump’s election victory. After his projected win on November 6, Bitcoin jumped $6,000 in a single day, surpassing $74,000, and just a week later, the cryptocurrency reached $90,000. Bitcoin has risen by 130% this year, vastly outperforming the S&P 500’s 28% gain.
Trump, who once dismissed Bitcoin as “not money” and “highly volatile,” has recently shifted his stance. His newfound support for cryptocurrency seems aimed at attracting younger voters, a demographic that is more likely to own crypto assets. Trump has even floated the idea of creating a “strategic national bitcoin stockpile” and suggested that Bitcoin seized from criminals should be held rather than auctioned off, as is currently the practice.
Trump has also ventured into the cryptocurrency space with the launch of his own business, World Liberty Financial, and gained attention for buying burgers with Bitcoin at a Manhattan bar popular with crypto enthusiasts. Reports suggest that Trump’s media company, which owns Truth Social, is in talks to acquire Bakkt, a crypto trading platform.
As Trump’s administration begins to take shape, his growing embrace of cryptocurrency, alongside these key appointments, points to a significant shift in U.S. policy that could reshape the future of digital assets.
