Bitcoin rose on Friday, recovering most of its weekly losses; positive regulatory moves by the SEC helped markets offset the negative impact of the Clarity Act's failure in Congress.
The broader cryptocurrency market also saw gains, with risk appetite bolstered by falling oil prices and Treasury yields. Dovish signals from the Bank of Japan further stimulated interest in risk assets.
Bitcoin rose 1.4% to $77,560.9 as of 09:17 Moscow time. The world's largest cryptocurrency traded virtually flat for the week, having recouped the bulk of its initial losses.
SEC Approves Tokenized Stocks Following Clarity Act Failure
On Thursday, the U.S. Securities and Exchange Commission (SEC) announced a long-awaited exemption allowing companies to offer trading in blockchain-based stocks and other securities—so-called "tokenized" assets.
The regulator granted a five-year exemption from certain requirements to platforms facilitating the trading of tokenized stocks. These tokens are digital assets pegged to shares and traded primarily on a blockchain.
This exemption could foster the convergence of digital assets and traditional finance and is expected to bring the SEC closer to its long-term goal of enabling round-the-clock trading.
The decision regarding tokenization helped crypto markets look past the failure of the Clarity Act and bolstered confidence that U.S. regulators are capable of formulating industry rules independently, without congressional involvement. SEC Chairman Paul Atkins signaled that the agency would proceed with its own regulatory initiatives after the Senate rejected the Clarity Act.
However, analysts point out that only Congress can enact long-term regulations; any rules implemented without a legislative framework would remain vulnerable to future shifts in the political landscape or legal challenges.
Crypto Market Today: Altcoins Recover and Regain Weekly Losses
The broader cryptocurrency market strengthened on Friday, recovering most of the losses sustained earlier in the week. Sustained declines in oil prices—driven by signs of increased supply from Saudi Arabia—bolstered markets, as did falling Treasury yields following this week's Federal Reserve rate hike, which provided much-needed clarity for market participants.
Ether, the world's second-largest cryptocurrency by market capitalization, rose 1.8% to $2,485.0, while XRP gained 1.7%.
Altcoins outperformed Bitcoin on Friday, as the SEC's stance on tokenization primarily benefits blockchains other than Bitcoin. Several major altcoin blockchain platforms already offer tokenized stocks.
Solana rose 5.9%, Cardano gained 8%, and BNB jumped 3.8%.
Memecoins Dogecoin and $TRUMP each gained approximately 4%.