cryptocurrency

Published on
21/08/2026 – 12:42 GMT+2

The world’s largest cryptocurrency touched an intraday high of $79,500 on Friday, its best level in months, before easing to around $77,700 at the time of writing, leaving it up more than 25% since Monday.

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The rally caps one of Bitcoin’s most dramatic weeks in years, following a stretch in which the token had lagged well behind its 2025 highs for much of 2026.

For six straight weeks, Bitcoin had been stuck grinding between $62,000 and $66,000, having fallen over 50% from the all-time high of around $126,000 it reached last year in October, to the low of roughly $57,600 it hit early in July of this year.

That prolonged malaise had encouraged traders to build up bearish positions over the course of the year, betting the token’s underperformance would continue. When the price broke higher this week, those bets unwound violently leading to an episode of forced short covering.

Ether, the second-largest cryptocurrency, and other digital assets have also surged on the same wave of positioning and momentum was reinforced by signals of extra liquidity from Washington.

The US Treasury doubled the size of its bond buybacks earlier in the week to calm a jittery bond market, and when yields climbed back regardless, US Treasury Secretary Scott Bessent vowed on Thursday to increase the buybacks even further.

Easier financial conditions and a softer dollar tend to favour riskier assets such as Bitcoin.

Regulatory developments also added further fuel. On Tuesday, the US Securities and Exchange Commission filed a proposal called “Regulation Crypto Assets”, offering crypto issuers lighter registration requirements.

A day later, US President Donald Trump hosted Coinbase’s Brian Armstrong, Ripple’s Brad Garlinghouse, Gemini’s Winklevoss twins and other industry leaders at the White House, pushing Congress to pass the long-delayed Digital Asset Market CLARITY Act.

The bill, which would split oversight of digital assets between the SEC and the US Commodity Futures Trading Commission, cleared the House last year but remains stalled in the Senate, needing 60 votes to clear a procedural hurdle on 15 September that it is not yet assured of overcoming.

Trump’s Hyperliquid remarks send HYPE surging

Among the most striking moments of Wednesday’s summit came when US President Donald Trump said the Commodity Futures Trading Commission was working to bring Hyperliquid, a decentralised derivatives exchange, onshore “in a fully compliant legal fashion”, though the regulator has yet to publish any timeline for doing so.

The comment sent HYPE, Hyperliquid’s native token, surging 25% within 24 hours.

As it stands, HYPE is trading at around $74, up more than 30% since Trump’s remarks.

The decentralized exchange, popular with perpetual futures traders, has become something of a proxy for how far Washington’s warmer stance on crypto could extend.

The SEC announced on Tuesday that it had filed a proposal titled “Regulation Crypto Assets”, giving crypto entrepreneurs a clearer, considerably lighter route to raising capital under federal securities law, according to the press release published by the regulator.

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It is the agency’s first formal rulemaking dedicated to crypto asset offerings, building on broader interpretive guidance the SEC issued in March, and would spare qualifying issuers the costly registration process required of most public offerings.

At the centre of the proposal sit two new exemptions.

The “startup exemption” would let an issuer raise up to $5 million (€4.3mn) over a four year period without registering the offering.

A second, the “fundraising exemption”, would permit raises of up to $75 million (€64.7mn) within any 12 month stretch, though issuers relying on it would still need to publish financial statements and meet ongoing reporting duties.

Both routes ask companies to give investors narrative, principles based disclosures, rather than the dense legal filings typically demanded of public listings.

The proposal also sets out a conditional safe harbour that could eventually place certain tokens outside the legal definition of a security, once an issuer has finished, or permanently abandoned, the managerial efforts it promised investors.

It would also override conflicting state registration rules for offerings made under the exemptions, sparing issuers from having to comply separately with individual state securities regimes.

SEC Chairman Paul Atkins described the package as a “minimum effective dose” of oversight, protecting investors while leaving builders maximum room to innovate.

The reception of the proposal has been largely warm.

Summer Mersinger, CEO of the Blockchain Association, said the move finally delivers the tailored regulatory clarity the sector has sought for years. Cody Carbone, CEO of the Digital Chamber, likewise praised the plan, pledging support in helping the industry expand within the US rather than abroad.

However, the proposal is far from final. It stays open for public comment for 60 days once published in the Federal Register, meaning its provisions could still change, or be scrapped, before any final rule is adopted.

US Senate stalls, regulator steps in

The SEC’s move comes roughly a week and a half after the US Senate left Washington for its summer recess without advancing the Digital Asset Market CLARITY Act (H.R. 3633), the industry’s flagship bill, which would split oversight of digital assets between the SEC and the US Commodity Futures Trading Commission.

US Senate Majority Leader John Thune filed a cloture motion on the bill on 7 August, but lawmakers departed before a vote was held. That motion is now due to come up again on 15 September, a procedural hurdle rather than a final vote, once senators return.

SEC Chairman Paul Atkins has argued on more than one occasion that only Congress can deliver a lasting, “future-proofed” framework able to survive changes in political leadership, and the Commission says it still backs the bill’s passage.

Even so, with its timetable slipping into autumn, the regulator appears to have decided not to wait, instead using powers it already holds to offer the industry some certainty while lawmakers prepare to resume the debate next month.