Bitcoin, the world’s largest cryptocurrency, approached its previous record high on Tuesday amid fluctuating trading.
This comes as the U.S. Securities and Exchange Commission (SEC) unveiled a plan to overhaul rules for the cryptocurrency sector.
Bitcoin prices rose 3.8%, while Ethereum, the second-largest cryptocurrency, gained 1.4%.
Bitcoin reached a record high of $109,071 on Monday when President Donald Trump, who has called himself a “crypto president,” was sworn in. However, it dropped after crypto was not included in a series of actions on his first day in office.
The SEC’s new leadership announced the creation of a task force to develop a regulatory framework for digital assets. This marks the first major step by Trump’s administration to address crypto policy.
Some analysts warned of market volatility until clearer policies are introduced.
Trump’s $TRUMP-branded “meme coin,” launched on Friday, saw a decline on Tuesday, according to CoinMarketCap. In addition, World Liberty Financial, a crypto project linked to Trump, announced on Monday that it had completed a $300 million initial token sale and would issue more tokens.
While Trump has pledged to transfer management of his assets to his children, his crypto ventures have raised concerns over potential conflicts of interest.
Acting SEC Chair Mark Uyeda’s office said the new task force would focus on creating clear regulations, providing registration paths, establishing disclosure rules, and applying enforcement actions. Trump is also expected to issue executive orders soon to promote Bitcoin adoption further.
