By Niket Nishant
(Reuters) – Shares of New York-listed cryptocurrency companies rose on Monday after Republican presidential candidate Donald Trump praised bitcoin and promised friendlier regulation for the industry.
Shares of cryptocurrency exchange Coinbase (NASDAQ:) rose 3%, while those of miners Bitfarms, Riot Platforms (NASDAQ:) and Clean spark (NASDAQ:) rose between 4% and 5%.
Trump has cast himself as the pro-bitcoin candidate ahead of the November election. The former president's return could be a major victory for the industry, which has often complained of excessive oversight and a hostile regulatory environment under President Joe Biden.
“Any 'Trump trade' ahead of the US election should include a higher allocation to bitcoin and bitcoin-linked stocks,” Bernstein analysts wrote in a note.
Cryptocurrencies have quickly moved from the fringes of the financial world into the mainstream, helped by backing from institutional investors and the approval of exchange-traded funds tied to the spot price of bitcoin and ether.
“Sentiment globally has been incredibly positive this year… All of this is setting the stage for what many believe will be the next bull run in 2024-25,” said CoinCorner CEO Danny Scott.
Still, Securities and Exchange Commission Chairman Gary Gensler, the Biden administration’s top cryptocurrency enforcer, has warned investors about the wild volatility and speculative nature of tokens like bitcoin.
On Saturday, Trump said he would fire Gensler “on day one.” He added that his administration would create a national “reserve” of bitcoins using the cryptocurrency that the U.S. government currently holds and that was largely seized in law enforcement actions.
The Republican candidate has also previously said he wants all remaining bitcoins to be mined in the United States.
“The ideal scenario for bitcoin mining is emerging,” Bernstein wrote.
On Monday, bitcoin surpassed $70,000 for the first time since mid-June.
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