Regulation
Cryptocurrency Stocks Jump in US After Donald Trump’s Pro-Bitcoin Speech
Shares of New York-listed cryptocurrency companies rallied before the open on Monday after Republican presidential candidate Donald Trump spoke out about Bitcoin and promised more favorable regulation for the sector.
Shares of cryptocurrency exchange Coinbase rose 3.7%, while miners Bitfarms, Riot Platforms, and CleanSpark rose between 3.4% and 4.5%.
“The cryptocurrency market interprets a Trump victory scenario as more positive for cryptocurrencies, given the Biden administration’s strong regulatory crackdown on cryptocurrencies and Trump’s pro-Bitcoin statements,” Bernstein analysts wrote in a note.
Cryptocurrency industry executives have often complained about excessive oversight and a hostile regulatory environment under President Joe Biden.
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But Securities and Exchange Commission Chairman Gary Gensler, the administration’s top cryptocurrency enforcement officer, defended his view of the industry, citing the extreme volatility and speculative nature of assets like Bitcoin.
However, cryptocurrencies have quickly moved from the fringes of the financial world to the mainstream, aided by the support of institutional investors and the approval of ETFs tied to the spot price of Bitcoin and Ether.
A Trump victory could give the sector a further boost. On Saturday, he said his administration would create a national Bitcoin “reserve” using the cryptocurrency currently held by the U.S. government, much of which has been seized in law enforcement actions.
The Republican candidate has also previously said that he would like all remaining Bitcoin to be mined in the United States.
“A Goldilocks scenario for Bitcoin mining is emerging,” Bernstein wrote.
Bitcoin also jumped 2.4%, hitting its highest level since mid-June.
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