Speaking at the ASIC Annual Forum, the regulator’s chair, Joe Longo, cut through the hype with a blunt “who cares” about bitcoin’s price jump.
Asked to comment on bitcoin’s performance since the US election, Longo called it a classic case of the “bigger fool theory”.
The chair also criticised bitcoin’s environmental impact, pointing out: “The environmental impact to create that stuff … [is comparable to] the whole power of small European countries.”
Joining Longo on a panel, Reserve Bank governor Michele Bullock described bitcoin’s rise as simply “more buyers than sellers”.
Bullock went further, challenging its very definition: “It’s not a currency, it’s not money, it’s being used as some sort of asset class. I don’t understand it,” she said, adding, “I don’t really see a role for it certainly in the Australian economy or the payments system.”
Together, Longo and Bullock’s remarks signal a clear message – bitcoin’s speculative surge and heavy environmental costs leave regulators unconvinced of its value.
But while Australian regulators cast doubt on bitcoin’s legitimacy, the US appears to be taking a drastically different stance as President-elect Donald Trump’s incoming administration signals a potential pivot toward favouring digital assets.
Reports suggest Trump is considering appointing a more bitcoin-friendly Securities and Exchange Commission (SEC) chair, a move that could dramatically reshape the regulatory landscape, shifting from strict enforcement to a more transparent and predictable framework that fosters digital currency use.
This shift comes as bitcoin prices have surged, hitting a record high of over US$93,000 earlier this week before settling above US$87,000 on Friday.
BTC Markets CEO Caroline Bowler highlighted the impact of Trump’s return, noting: “Investors are sending a clear message: optimism for the future of crypto under Trump, especially given his public support for bitcoin and digital assets.
“President Trump’s administration is widely expected to create a more favourable environment for crypto’s growth, boosting market confidence and attracting new investment.
“While the specifics remain uncertain, the mere perception of such moves is enough to drive prices upward in a market as narrative-driven as crypto.”
Speaking to InvestorDaily last week, Magnet Capital co-founder Egor Sidelska echoed this sentiment, noting that the current administration has taken a more cautious and regulatory-heavy approach to crypto, which did not bode well for industry players.
“The head of the SEC holds this unwieldy ability to make people bend at the knee and succumb to our will, but not provide any guidance as to how they can actually register in a meaningful, lawful way,” Sidelska said.
And given the favourable rhetoric and promises from Trump’s campaign, the co-founder predicts that bitcoin will continue to soar in anticipation of a more crypto-friendly administration.
“We’ll see all-time highs throughout the end of this year, until he gets into office, just because people are expecting that this, any positive sentiment, any rhetoric, is just going to add fuel to the fire.
This outlook is broadly in line with analysts’ forecasts that bitcoin will surpass US$100,000 in just a matter of months.
Back in September, the assistant governor at the RBA, Brad Jones, said the central bank has decided to focus on a wholesale central bank digital currency (CBDC) rather than a retail version, targeting applications within institutional finance over consumer transactions.
Namely, the central bank had conducted a pilot CBDC project in 2023 to explore use cases for a CBDC in Australia, which it said revealed little interest in retail applications.
