In early November, shortly after Donald Trump declared his intention to nominate Paul Atkins—an outspoken advocate of virtual tokens—as the next head of the Securities and Exchange Commission (SEC), Bitcoin’s price surged well above $100,000. Just a few years ago, in late 2020, this same asset hovered around $20,000.
This dramatic rise, over 400% in three years, stunned even those confident that crypto’s brightest days were ahead. Trading volumes spiked across major exchanges and some observers noted that related sectors, from trading platforms to the wealth of gaming operators that now accept cryptocurrency, also saw increased interest.
The iGaming sector has particularly benefited from these highs. With many specialized crypto casinos now running directly from platforms like Telegram, the crypto boom is causing the popularity of these sites to soar. By using crypto as a payment method, they are able to offer immediate payouts and other perks like anonymous play, setting themselves apart from traditional iGaming platforms.
However, while the massive crypto rally triggered fresh optimism in such sectors and across the market, it also brought a sense of caution. Market veterans drew parallels to the late 1990s when internet stocks soared before the dot-com bubble burst.
Are we seeing a repeat scenario with tokens and coins instead of traditional shares? Or has the stage been set for a stable era, with crypto recognized as a legitimate financial instrument rather than a novelty?
Election Aftermath Fuels New Crypto Surge
The political context behind this spike is key. At the start of this year, Gary Gensler’s SEC had been pushing hard against what it saw as an industry full of opaque offerings. Lawsuits targeted major crypto firms over alleged unregistered securities and investor harm. Under Gensler’s watch, enforcement actions sent ripples through the market.
One well-known crypto exchange faced litigation, and a top token issuer had its conduct challenged. This period gave rise to deep uncertainty, and by mid-2023, the overall crypto market cap had shrunk by more than 60% from its late-2021 highs.
Trump’s victory and his decision to back Atkins changed that mood almost overnight. Atkins, who served as an SEC commissioner under George W. Bush, is known for championing lighter regulatory frameworks for emerging sectors.
Traders interpreted his nomination as a green light for aggressive expansion. With a more crypto-friendly SEC chair waiting in the wings, projections of $150,000 Bitcoin or even higher suddenly seemed less like daydreams.
Why the SEC Shift Matters
To understand the scale of this shift, consider that the SEC serves as the nation’s leading investor-protection agency. Under Gensler, its staff clarified that many crypto offerings looked and behaved like securities and should be regulated accordingly. That would mean strict disclosure rules, investor protections, and a framework that made it harder for untested ventures to raise capital without oversight.
Now, under Atkins, many believe that lawsuits will slow down or pause, and the agency will rethink how it classifies crypto assets. The central legal debate is whether these tokens are comparable to stocks and bonds or closer to commodities like gold. During the previous SEC regime, at least one major token issuer was charged with securities violations, while another high-profile crypto exchange faced claims it ran an unregistered securities market.
Though some rulings landed in the agency’s favor, others came out mixed. A decision involving a prominent cross-border token concluded that, in certain contexts, tokens sold on exchanges were not securities—an outcome that the crypto community applauded.
By shifting its stance, the SEC might start drafting custom frameworks that consider blockchain technology assets’ unique features. This could accelerate crypto’s entry into mainstream finance.
A Policy Environment That Encourages Crypto
Expanding acceptance won’t hinge solely on the SEC’s position. Lawmakers play a role, too. With the Republicans now controlling the Senate, legislation favorable to crypto is on the table. This year, the House passed a measure to give the Commodity Futures Trading Commission (CFTC) greater authority over certain digital assets.
The CFTC’s oversight is known to be lighter in some respects than the SEC’s. Should similar legislation pass in the Senate, crypto firms might find an easier regulatory path encouraging them to base operations in the United States rather than abroad.
Observers who question this direction warn that weakening safeguards could harm investors. Groups like Better Markets argue that shifting away from longstanding investor protections may create conditions similar to those before the Great Depression, when “caveat emptor” governed trading floors.
Critics worry that new legislation could let issuers self-certify their tokens as commodities, bypassing investor disclosure rules that securities demand.
Conversely, crypto supporters view this regulatory softening as overdue modernization. Many have long asserted that the old categories—stocks, bonds, and commodities—fail to reflect modern financial instruments.
Wall Street’s New Appetite
The endorsement of crypto by policymakers and regulators would matter little if big finance refused to engage. But that’s not happening. Giants like BlackRock and Fidelity have launched Bitcoin exchange-traded funds (ETFs), offering investors access to crypto through mainstream brokerage accounts.
Another product bundles various tokens into a single basket, appealing to those who want broad exposure without picking individual winners. Since the election, Bitcoin ETF prices have jumped by around 45%. The world’s largest asset managers are piling in, which signals confidence.
Potential Risks Beneath the Surface
Despite the optimism, risk factors persist. Some economists question the long-term viability of tokens that lack underlying cash flows. Others recall what happened in 2022-23, when crypto prices tumbled by more than 70%, wiping out billions in market value.
At that time, the broader economy escaped serious harm because the crypto sphere still stood somewhat apart from core banking. Regulators, including the Federal Reserve and the Federal Deposit Insurance Corporation, have openly stated that they do not want the volatility of crypto markets trickling into the traditional financial system.
Still, the new administration might relax this stance. Relaxed oversight could mean more banks dabble in crypto custody or collateralized loans with crypto assets.
Conclusion
The post-election crypto boom reflects a powerful mix of political changes, regulatory shifts, Wall Street enthusiasm, and social-media-driven excitement. Rapid price increases and looser rules tempt many to believe that crypto assets have matured.
The SEC’s new stance, potential legislative changes, and Wall Street’s acceptance could form the pillars of a more integrated ecosystem—or set the stage for a spectacular boom-and-bust cycle.
Investors are left to weigh the allure of easy profits against the risks lurking beneath the surface. The next few years may reveal whether this new surge is the start of a lasting era in finance or another chapter in a long series of speculative frenzies.
