Bitcoin has recently surpassed the $100,000 mark, driven by a substantial rally following Donald Trump's U.S. presidential election win. The cryptocurrency increased from $69,374 on Election Day to hitting an all-time high of $103,713. This surge is attributed to Trump's pro-cryptocurrency stance and his nomination of cryptocurrency advocate Paul Atkins as the next SEC chair. Trump’s election victory has raised hopes among top crypto players for favorable legislative and regulatory changes. Despite this rally, experts caution about the risks and volatility associated with bitcoin investment. The sustainability of this upward trend depends on several factors, including regulatory decisions and market conditions. Though it could continue to climb, bitcoin’s history shows it can also decline rapidly, making it a speculative investment.
In line with these developments, President Donald Trump's cryptocurrency endeavors are expanding with the launch of a new dollar-backed stablecoin through World Liberty Financial and the introduction of investment funds for digital assets in collaboration with Trump's Truth Social parent company, Trump Media & Technology Group Corp . Announced on Tuesday, the stablecoin will be pegged at a 1-to-1 ratio with the U.S. dollar, aiming to facilitate seamless and secure cross-border transactions. Additionally, TMTG plans to release themed exchange-traded funds later this year in partnership with Crypto.com. As critics voice concerns about the appropriateness of a public office holder engaging in such financial ventures, Trump continues to promote these projects and aims to make the U.S. a leading hub for cryptocurrency. Despite ethical agreements that restrict his direct involvement in day-to-day management, Trump actively endorses and profits from these crypto-related initiatives.
The Federal Deposit Insurance Corporation has also made significant moves in the crypto space. The FDIC announced that banks no longer need prior approval to engage in cryptocurrency-related activities, such as holding digital currency assets or partnering with industry companies. This marks a significant policy reversal from the cautionary stance adopted two years ago under the Trump administration. FDIC acting chairman, Travis Hill, emphasized the shift away from the previous, flawed approach. This change comes after a joint warning issued in January 2023 by the Fed, FDIC, and the Office of the Comptroller of the Currency following the crash of the terra stablecoin and FTX's downfall. The OCC was the first to revise guidelines allowing banks to partake in common crypto activities without prior approval. Legal actions by Coinbase revealed FDIC's updated policy, which now requires institutions to manage associated risks adequately while engaging in digital asset activities.
In the international arena, the Australian Transaction Reports and Analysis Centre has formed an internal cryptocurrency task force to combat the criminal exploitation of cryptocurrencies. This task force will target crypto ATM providers who do not comply with Australia's anti-money laundering laws. AUSTRAC's research indicated increasing misuse of cryptocurrency for money laundering, scams, and money mule operations. With over 1,200 crypto ATMs and 400 registered digital currency exchange providers in the country, the task force aims to ensure stringent practices to prevent fraudulent activities. The value of the cryptocurrency market has almost doubled in the past year, with Bitcoin reaching record highs. AUSTRAC CEO Brendan Thomas highlighted the growing issue of Australians falling victim to cryptocurrency scams and warned that non-compliant crypto ATM providers would face financial penalties.
These developments underscore the rapidly evolving landscape of cryptocurrency, with significant policy shifts and market movements both in the United States and internationally. As the industry continues to mature, stakeholders are closely monitoring regulatory changes and market dynamics to navigate the complexities of the digital asset ecosystem.
