Cryptocurrencies experienced a rebound this week, attributed to an improving regulatory environment and investor reactions to ongoing tariff developments. Additionally, business ventures associated with President Donald Trump have announced increased involvement in the cryptocurrency sector.
Since the previous Friday, meme stocks Dogecoin (DOGE) and Shiba Inu (SHIB) have risen by 15.5% and 14%, respectively, as of 11:57 a.m. ET on Thursday. The price of Sui (SUI) surged by more than 20%.
Regulatory Developments
President Trump has committed to supporting the cryptocurrency sector, reflected in his decision to surround himself with crypto advocates and issue an executive order for the creation of a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, potentially involving various cryptocurrencies.
The U.S. Securities and Exchange Commission (SEC) has recently dismissed another crypto-related investigation into Immutable, an Australian gaming platform involved in private sales of a native cryptocurrency. This marks one of several dismissals by the SEC, including investigations related to companies such as Coinbase Global, Robinhood Markets, Kraken, and Ripple. This move indicates a less obstructive stance from regulators toward the industry.
Furthermore, Congress has voted to repeal a cryptocurrency tax provision that would have required some decentralized platforms to collect and submit user trading data to the Internal Revenue Service (IRS). These platforms would also have been required to issue 1099 forms and report other transactions like traditional securities brokers. The repeal is expected to be signed into law by President Trump.
Trump Media & Technology Group, the parent company of Truth Social, has announced a partnership with Crypto.com to assist in launching spot crypto exchange-traded funds (ETFs). Crypto.com will provide back-end technology, custodial services, and cryptocurrencies for the ETFs.
In other company-specific news, Elon Musk, a known advocate for Dogecoin, posted an AI-generated meme on his platform, X, featuring himself holding a Shiba Inu dog, the mascot of Dogecoin. While such posts may seem trivial, Musk’s mentions of Dogecoin or cryptocurrency often incite significant market activity, given his nearly 220 million followers on X.
Shiba Inu confirmed rumors regarding the launch of Shib Finance, a platform aimed at offering lending, borrowing, and savings features in a more comprehensive manner than typical crypto collateral-based lending, potentially enhancing the utility of Shiba Inu. Meanwhile, Sui, a platform that uses smart contracts to enhance transaction speed and facilitates interaction with stablecoins, seems to be gaining momentum following Canary Capital’s application to launch a spot crypto ETF for Sui.
Challenges and Opportunities
Despite these positive developments in the cryptocurrency sector, President Trump’s tariff policies continue to exert pressure, with uncertainty arising from fluctuating tariff scope and intensity. Nevertheless, cryptocurrencies have generally risen since Trump’s election in November.
Though Dogecoin, Shiba Inu, and Sui show promise amid a favorable crypto market, some prefer to invest in more established tokens such as Bitcoin and Ethereum.
