- Bitcoin‘s value dropped below $112,000 after a July peak of $123,000.
- Investors are reacting to the launch of the U.S. Securities and Exchange Commission’s (SEC) “Project Crypto.”
- SEC Chair Paul Atkins, appointed by Donald Trump, introduced new plans to integrate crypto into U.S. financial regulations.
- Market analysts say Project Crypto is a major policy shift that could reshape U.S. capital markets.
- The announcement follows changes in SEC leadership and growing concerns about U.S. dollar stability.
Bitcoin prices fell sharply at the beginning of August, dropping below $112,000 after last month’s high of $123,000. This decline comes amid investor uncertainty and concerns about changes in cryptocurrency oversight in the United States.
Last week, Paul Atkins, the new chair of the U.S. Securities and Exchange Commission (SEC), announced “Project Crypto,” an initiative aimed at incorporating cryptocurrency into existing U.S. securities laws and financial systems. The move follows the resignation of former SEC chair Gary Gensler and the swearing-in of Atkins by President Donald Trump.
In his July 31 speech at the America First Policy Institute, Atkins stated, “That is why I am launching Project Crypto and directing the SEC’s policy divisions to work with the Crypto Task Force, led by Commissioner Peirce, to swiftly develop proposals to implement the [President’s Working Group on Digital Asset Markets] recommendations.” Atkins added that Project Crypto will ensure the United States remains a leading place for business and technology innovation, “We will reshore the crypto businesses that fled our country, particularly those that were crippled by the previous administration’s regulation-by-enforcement crusade and ‘Operation Chokepoint 2.0.’”
Research company Bernstein described Project Crypto as the “boldest and most transformative crypto vision ever laid out by a sitting SEC chair.” Their analyst, Gautam Chhugani, wrote, “In our view, Project Crypto upends the concept of a regulatory moat in capital markets, allowing equal opportunity to new players to participate and innovate in security markets. It is time to upgrade the financial system from online to onchain.” Source
According to Matt Hougan, Chief Investment Officer at Bitwise, the SEC chair’s speech was highly supportive of cryptocurrency. He noted on social media, “I can’t imagine reading the speech and not wanting to allocate a significant portion of your capital to crypto. If it wasn’t priced in for me, I’m going to guess it wasn’t priced in for others.” Hougan’s note
Recent interest and high-profile support from U.S. political leaders have followed mounting fears about the future strength of the U.S. dollar. Market watchers are also monitoring potential effects from major financial institutions, including anticipated moves by BlackRock that could affect bitcoin trading.
The term “Operation Choke Point 2.0” refers to actions crypto companies say limited their access to banking services in 2022, a practice some compared to earlier federal efforts to restrict specific industries. Since resuming office, President Trump has expressed strong support for cryptocurrency, calling himself the first “crypto president” and promising to remove restrictions placed during the previous administration.
The full text of Atkins’s speech, “American Leadership in the Digital Finance Revolution: Evolution of Capital Markets—From Buttonwood to Blockchain,” is available on the SEC website.
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