Bitcoin climbed sharply on Friday, recovering most of its earlier weekly losses as investors welcomed fresh regulatory developments from the U.S. Securities and Exchange Commission.
The rebound came even after the Clarity Act failed to advance in Congress, with traders instead focusing on signs that regulators may still move forward with clearer rules for digital assets.
Bitcoin rose around 2.8% to $78,400 by 09:40 ET. The world’s largest cryptocurrency was roughly flat for the week after recovering much of its earlier decline.
SEC Approves Tokenized Stock Exemption
The U.S. Securities and Exchange Commission introduced a long-awaited exemption on Thursday that allows companies to facilitate trading in tokenized stocks and other blockchain-based securities.
The SEC granted eligible platforms a five-year exemption for offering these products.
Tokenized stocks are digital assets designed to represent traditional shares while trading on blockchain networks.
The move could help bring digital assets closer to traditional financial markets. It may also support the SEC’s longer-term objective of enabling more continuous, potentially 24-hour securities trading.
Crypto Markets Look Past Clarity Act Setback
The SEC decision helped investors move beyond concerns surrounding the failure of the Clarity Act.
The development also strengthened expectations that U.S. regulators may be able to introduce parts of a crypto regulatory framework through their existing authority, even without immediate congressional legislation.
SEC Chairman Paul Atkins indicated that the agency intends to continue pursuing regulatory approvals following the Senate’s rejection of the Clarity Act.
However, some analysts remain cautious.
They argue that legislation passed by Congress would provide a more durable regulatory framework. Rules introduced solely by agencies could be more vulnerable to future political changes or legal challenges.
Falling Oil Prices Support Risk Appetite
Broader market conditions also supported Bitcoin and other cryptocurrencies on Friday.
Oil prices moved lower amid signs of improving Saudi Arabian supply, while U.S. Treasury yields also declined.
Both developments helped improve investor appetite for risk assets.
Markets also continued to digest the Federal Reserve’s latest interest rate increase, which provided investors with greater clarity over the near-term monetary policy outlook.
Dovish signals from the Bank of Japan added further support to global risk sentiment.
Altcoins Outperform Bitcoin
The broader cryptocurrency market also moved higher, with several major altcoins recovering much of their weekly losses.
Ether, the second-largest cryptocurrency by market capitalization, gained around 2.7% to trade near $2,509.
XRP also advanced about 2.7%.
Several altcoins outperformed Bitcoin, partly because the SEC’s tokenization exemption could provide greater direct benefits to blockchain networks that already support tokenized financial assets.
Solana jumped around 6.9%, while Cardano rallied more than 8%. BNB gained approximately 3.9%.
Meme Coins Join the Crypto Rally
Meme coins also participated in the broader market recovery.
Dogecoin rose around 6.1%, while TRUMP gained approximately 5.7%.
The strong performance across major altcoins and meme coins showed that Friday’s rally extended well beyond Bitcoin.
For now, crypto markets appear focused on improving regulatory signals, lower energy prices and easing bond yields. However, the longer-term U.S. regulatory outlook remains uncertain following the failure of the Clarity Act.
