On December 5, Bitcoin surpassed the $100,000 mark, hitting a historic high with a 4% increase in the day and a 138% rise for the year. Since November 4, Bitcoin has jumped from $68,000 to $100,000 in just one month. This surge has garnered widespread attention, especially amid shifts in the regulatory environment within the cryptocurrency sector, making Bitcoin's price performance increasingly noteworthy.
Meanwhile, changes are also happening in the US cryptocurrency regulatory environment. On December 4, Trump announced via social media the nomination of Paul Atkins for Chairman of the U.S. Securities and Exchange Commission (SEC). Atkins, the CEO of risk consultancy firm Patomak Global Partners, previously served as an SEC commissioner from 2002 to 2008. It is widely believed that if confirmed by the Senate, Atkins could alter the regulatory direction set by current SEC Chairman Gary Gensler, advocating for more lenient policies.
Gensler's regulation of the cryptocurrency sector has been criticized as too strict, causing many crypto companies and projects to face enforcement challenges, mainly due to failing to register with the SEC or not disclosing work related to unregistered securities. Atkins has long advocated for a more relaxed regulatory framework for emerging technologies, particularly cryptocurrencies and blockchain. He believes that moderate regulation can foster innovation and promote the growth of the crypto sector instead of hindering it. He supports creating a unified and simplified regulatory framework and hopes to clarify which digital assets should be considered securities and which should not, thereby providing a clearer legal environment for crypto businesses.
In addition to Atkins' nomination, Fed Chairman Jerome Powell also shared his views on Bitcoin and cryptocurrency at the DealBook Summit on December 4. Powell stated that Bitcoin is still seen as a speculative asset, more akin to gold rather than the dollar. He emphasized that due to its high volatility, Bitcoin has not become a primary payment method or a reliable store of value. He pointed out that Bitcoin is not a competitor to the dollar but competes with gold. Powell also noted that the Federal Reserve's goal is to keep the banking system "safe and sound," and that the regulation of the cryptocurrency industry is not the Fed's responsibility. Furthermore, he clearly stated that he is not allowed to hold Bitcoin.
Internationally, Russian President Vladimir Putin has also publicly supported cryptocurrencies, especially Bitcoin, suggesting it could become a better alternative for foreign currency reserves. At an investment meeting on Wednesday, Putin questioned the necessity of holding foreign reserves, especially under circumstances where Russia's reserves have been frozen. He stated that Western sanctions have compelled Russia to seek alternatives, including cryptocurrencies. He remarked that digital assets like Bitcoin cannot be banned, emphasizing, "Who can ban it? No one."
Putin's comments reflect Russia's changing attitude toward Western sanctions. Since the outbreak of the Russia-Ukraine conflict in 2022, Russia's economy has faced immense pressure as Western countries have frozen Russia's foreign reserves and used them to support Ukraine. In light of this, Russia has gradually accepted digital assets and implemented relevant legal frameworks. Last week, Putin formally signed a law recognizing cryptocurrencies as "property" and established tax policies for crypto trading and mining activities. This law, effective in 2025, marks a significant step in Russia's approach to crypto regulation and taxation.
With the evolving global regulatory environment for cryptocurrencies, Bitcoin and other digital assets are facing a more complex policy landscape. The attitudes of governments and regulatory bodies worldwide could directly impact the future development path of the crypto market.
