Crypto Stocks Rally on Hopes of Pro-Regulation Shift in Washington
A potential pardon for Binance's founder and the nomination of a crypto-savvy lawyer to lead the CFTC fuel major gains for digital asset firms.
The cryptocurrency sector surged Friday on a wave of optimism, driven by two significant developments that suggest a potentially transformative pro-growth shift in U.S. regulatory policy. Reports that President Trump intends to nominate crypto legal expert Michael Selig as the new chair of the Commodity Futures Trading Commission (CFTC), coupled with a presidential pardon for Binance founder Changpeng “CZ” Zhao, sent shares of crypto-related companies soaring.
Shares of Coinbase Global (COIN), the largest U.S. crypto exchange, jumped 10.06% to close at $355.23 in Friday trading. Crypto mining firms also caught the bid, with Riot Platforms (RIOT) climbing 4.66% and Marathon Digital (MARA) adding 1.17%.
A New Sheriff at the CFTC
The nomination of Michael Selig, currently a high-ranking lawyer within the SEC's own crypto division, to lead the CFTC is being interpreted by the industry as a deliberate move to install a knowledgeable and potentially more accommodating regulator. Selig is a well-regarded figure in digital asset law, known for advocating for clearer rules over the “regulation-by-enforcement” approach that has characterized recent years. His appointment would place a seasoned expert atop the agency widely expected to take primary responsibility for overseeing Bitcoin and other digital commodities.
For months, the digital asset industry has been hampered by regulatory ambiguity and a perceived turf war between the CFTC and the Securities and Exchange Commission (SEC). This uncertainty has kept significant institutional capital on the sidelines. A clearer framework, which analysts believe Selig would champion, is seen as the key to unlocking broader adoption and fostering innovation within the United States.
“The lack of clear rules of the road has been the single biggest headwind for crypto growth in the U.S.,” one market analyst noted. “Installing a commissioner who understands the technology and supports innovation sends a powerful signal that the administration is serious about keeping the digital asset industry in America.”
A Symbolic Pardon
Further fueling the rally was the news of a presidential pardon for Changpeng Zhao. The Binance founder, who was sentenced to prison after pleading guilty to violating U.S. anti-money-laundering laws, remains a highly influential figure in the industry. The pardon is viewed as a largely symbolic olive branch, signaling a desire to reset the often-antagonistic relationship between Washington and the crypto world.
While Binance’s own operations are outside the U.S., the gesture is seen as part of a coordinated effort to foster a more favorable domestic business climate. The move could encourage global crypto entrepreneurs to engage more constructively with U.S. regulators, a dynamic many believe is essential for the long-term health of the market.
The Path Forward
The combined effect of these two developments has been a palpable shift in market sentiment. For years, U.S.-based crypto firms have watched talent and innovation move to more welcoming jurisdictions in Asia and Europe. Investors are now betting that these moves could mark an inflection point, leading to the establishment of the U.S. as a central hub for the digital asset economy.
While the confirmation process for Selig must still play out in the Senate, the market’s reaction indicates a strong belief that the tide is turning. The industry will be closely watching for formal announcements and policy outlines that could finally provide the regulatory clarity it has long sought, potentially paving the way for the next phase of growth in the digital asset ecosystem.