Bitcoin surged on Wednesday, leading a rally across cryptocurrency markets after news of a two-week ceasefire between the United States and Iran sparked significant gains across risk-based assets.
Progress toward regulatory clarity on stablecoin payouts in the United States has also helped cryptocurrency markets, although the passage of a formal bill still seems a long way off.
Bitcoin jumped 4.7% to $71,835.60 by 11:27 AM Saudi time.
Bitcoin rises as the US and Iran signal a two-week ceasefire.
Bitcoin tracked gains in stocks and gold after US President Donald Trump said he would postpone an attack on Iran for two weeks, and that the two sides were working on a possible ceasefire.
Iranian officials also indicated that the United States had accepted a 10-point framework for a ceasefire, and suggested that reopening the Strait of Hormuz was possible.
Pakistan proposed a ceasefire, with Islamabad announcing that Washington and Tehran had agreed to the deal. Pakistani officials also offered to host direct ceasefire talks in Islamabad later this week.
Comments from the United States and Iran on Tuesday represent their strongest signal yet of a ceasefire, as the Middle East conflict enters its sixth consecutive week.
Risk-driven markets rallied on the prospect of a war ending, with Wall Street futures rising more than 3% in Asian trading.
The Federal Deposit Insurance Corporation proposes regulating stablecoin issuers as debate continues over the transparency law.
This week, the U.S. Federal Deposit Insurance Corporation formally proposed its approach to stablecoin issuers, which will entail regulating major issuers as outlined in the GENIUS Act.
Issuers of stablecoins will not have the same deposit insurance that traditional bank accounts have under the Federal Deposit Insurance Corporation, according to the proposal.
The Federal Deposit Insurance Corporation's proposal is the latest step by U.S. policymakers to create a clear regulatory framework for stablecoins and the returns paid on this asset class. The Clarity Act, which would establish this framework, remains under discussion in Congress after months of delays.
A key point of contention is the treatment of stablecoin returns, with major banks arguing that stablecoin issuers need to face strict regulatory requirements similar to those for traditional bank accounts.
However, supporters of the cryptocurrency industry have largely rejected this idea.
Cryptocurrency prices today: Altcoins follow Bitcoin's rise
The broader cryptocurrency market followed Bitcoin's gains, with Ether, the world's second-largest cryptocurrency, rising 6.9% to $2,250.15.
XRP, Solana and Cardano coins rose between 5% and 8%, while BNB added 2.8%.
Among the meme coins, Dogecoin rose by 4.3%, while $TRUMP jumped by 6.6%.
