Peirce Will Head Trump Administration’s New Crypto Task Force
Trump’s SEC forms a crypto task force led by Hester Peirce to create clear regulations for digital assets, fostering innovation and market integrity.
SEC Sets Up Crypto Task Force
Mark Uyeda, the Acting Chairman of the Securities and Exchange Commission, declared the establishment of a ‘task force for cryptocurrency’ to provide a framework for regulating virtual asset trading. This move demonstrates a policy change regarding digital assets regulation in the US.
Commissioner Hester Peirce will chair the crypto task force. During his campaigns, President Donald Trump said that, upon being elected, he would seek ways to lower barriers and promote innovation in the digital assets sector.
Tuesday’s announcement could be the first of the many steps toward fulfilling that promise.
Crypto Task Force and Regulatory Innovation
The crypto task force will tackle some of the most sensitive topics, such as coin registration, while ensuring it promotes innovation and protects users. Hester Peirce stated that the initiative anticipates working with the public to foster understanding about protecting investors and boosting the market’s integrity.
Numerous stakeholders were angry with Gensler’s policies during his regime. Some of the most notable ones were the refusals of several asset managers to launch their cryptocurrency ETFs and aggressive enforcement actions.
The crypto task force plans to conduct public sessions and would involve participants like investors, academics, and top market players. It will also collaborate with other federal regulators, such as the Commodity Futures Trading Commission.
This step could end years of uncertainty regarding compliance issues and legal standards in the crypto sector.
Bitcoin’s Price Surges on Crypto Task Force Announcement
Bitcoin responded positively to the latest announcement, as its price shot up by 2.4% and exceeded $106,000. The newly launched crypto task force will clarify the steps for total compliance for the SEC.
This administration started this initiative expecting it to lay the foundation for more structured and predictable crypto policies, boosting growth in the $3.7 trillion industry.
The president strengthened his administration’s support for crypto by launching his digital currency, $TRUMP, alongside First Lady Melania Trump’s token, $MELANIA. Within 48 hours of its launch, the $TRUMP token rose to a record $72 before consolidating at around $42.
The First Lady’s token also saw significant price inflation before settling. These initiatives prove this administration’s commitment to incorporating digital assets into the country’s economic policy.
The task force will engage professionals with extensive knowledge of blockchain technology. Trump aims to put the US at the forefront of the cryptocurrency market. For instance, the national Bitcoin reserve is an initiative that will involve a collaborative approach to lift the US above other cryptocurrency hubs.
BlackRock Adds to Its Bitcoin Portfolio
Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) continues to accumulate more Bitcoin as the cryptocurrency attracts more investment attention. The firm recently increased its holdings by purchasing 3,570 BTC worth approximately $682M
This acquisition brings BlackRock’s total BTC holdings to $559B, or 563,000 BTC. BlackRock’s IBIT also leads the inflow among spot Bitcoin ETFs for the third consecutive day.
The fund noted a $661.9M inflow on 21 January. The net inflow for the 12 US-spot Bitcoin ETFs in the day stood at $802.50M. Other contributors include ARK 21Shares’ ARKB, Fidelity’s FBTC, and Franklin Templeton’s EZBC, with relatively moderate inflows of $8.51M, $6.97M, and $6.18M, respectively.
Bitwise’s BITB bucked the inflow trend with $17.41M in outflows. The remaining BTC ETFs experienced “0″ flows throughout the day.
Investors’ Interest Rises as Bitcoin’s Price Surge
This surge in demand for Bitcoin follows its recent price rise to $108,020. With the new administration making it clear that it will pass favorable crypto regulations, investors have started viewing Bitcoin as a key part of their investment portfolio.
Michael Saylor’s MicroStrategy’s huge buy helps it retain its spot as the biggest corporate holder of Bitcoin, with 461,000 BTC. Other influential players like MARA and Riot Platforms are also growing their holdings.
BlackRock’s purchase of $1B worth of Bitcoin in December 2024 proves its interest in holding the asset for a long time. As of this report, Bitcoin’s price has consolidated around $105,000, with an 8% weekly gain.
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