Publicly-traded crypto firms dominated the stock market in January, even outpacing the crypto market in terms of market cap increase.
Crypto news outlet Decrypt reported that J. P. Morgan pointed out in a recent report that crypto firms tracked by the bank saw their market cap grow by 14% in January — reaching a value of $108 billion. The crypto market’s market cap rose by 8% during the same time span.
This growth came amid the inauguration of current pro-crypto United States president Donald Trump, as pointed out in the report. The anticipation of regulatory shackles being removed from crypto companies led to those growing at nearly double the speed of the overall crypto market.
The news follows Trump recently signing an executive order to establish a specialist working group to develop digital asset regulation, with a broader aim of stockpiling crypto holdings. The order reads:
“The digital asset industry plays a crucial role in innovation and economic development in the United States, as well as our Nation’s international leadership.”
The details
Bitcoin (BTC) — the world’s first cryptocurrency — saw its price rise by 9%, reaching $102,300 by the end of January. United States publicly-traded cryptocurrency exchange Coinbase, on the other hand, saw its market cap increase by 17% over the same month.
After a long history of prosecutor actions against the crypto industry, the United States Securities and Exchange Commission (SEC) is now being prosecuted itself. As reported in mid-November, republican state attorney generals and the DeFi Education Fund sued the United States Securities and Exchange Commission (SEC) and its five commissioners. The lawsuit’s document reads:
“The SEC’s sweeping assertion of regulatory jurisdiction is untenable. The digital assets implicated here are just that — assets, not investment contracts covered by federal securities laws.”
Now the SEC is dancing to a different tune, showing willingness to work with crypto firms, allowing for further growth in the industry. There are also areas that the regulatory may just stop attempting to regulate.
The United States Securities and Exchange Commission (SEC) does not oversee many memecoins, according to regulator’s commissioner Hester Peirce. She said during a recent interview:
“Many of the memecoins that are out there probably do not have a home in the SEC under our current set of regulations.”
