Bitcoin Surpasses $72K as Trump Supports CLARITY Act and SEC Proposes New Crypto Rules

Bitcoin Surpasses $72K

This week marked a significant surge for Bitcoin, which climbed above $72,000 as more than $3 billion in leveraged positions were liquidated across major exchanges. This rally primarily occurred during the short squeeze on August 19 and 20, where short positions accounted for approximately $2.77 billion of the total liquidations.

Trump Advocates for the CLARITY Act

In a notable political development, former President Donald Trump called on Congress to pass a “fair” version of the **CLARITY Act** during a White House event attended by leaders from major tech firms, including Coinbase and Ripple. This bill aims to redefine regulatory oversight of the digital asset market by dividing responsibilities between the **Securities and Exchange Commission (SEC)** and the **Commodity Futures Trading Commission (CFTC)**. Ongoing Senate negotiations face challenges related to ethics provisions.

SEC Proposes New Crypto Offering Exemptions

The SEC has proposed two new registration exemptions under **Regulation Crypto Assets**, allowing issuers to raise up to $75 million annually. One pathway enables eligible companies to raise up to $5 million over four years. This proposal includes a potential safe harbor condition for crypto assets to transition away from being classified as investment contracts.

Citi’s Institutional Bitcoin Custody Plans

Citi has announced plans to launch its **Custody+** platform, intended for institutional Bitcoin custody services, by the end of 2026. The platform aims to integrate traditional securities with cryptocurrency, facilitating more efficient asset servicing.

Ethereum and XRP Market Movements

In conjunction with Bitcoin’s rise, **Ethereum** also saw gains, trading above $2,400, driven by significant demand from U.S. spot Ether ETFs which experienced $189 million in inflows. Additionally, **XRP** surged by 17%, reaching an intraday high of $1.43, following support for a key amendment from Ripple.

Conclusion

This week has been pivotal for the cryptocurrency market, featuring major price movements and regulatory developments. As Bitcoin tops $72K and proposals like the CLARITY Act are pushed forward, stakeholders across the industry will be watching closely for further advancements.