Bitcoin hit an all-time high after the advancement of stablecoin legislation in the US stoked hopes of regulatory clarity under President Donald Trump.

The largest cryptocurrency climbed to a record of $109,500, breaching a previous high set at roughly the time of Trump’s inauguration on Jan. 20. Smaller tokens such as Ether and XRP also advanced.

Bitcoin and the broader crypto market have rallied in recent weeks thanks to regulatory tailwinds including the stablecoin bill advancing in the US Senate after a group of Democrats dropped their opposition Monday. The industry-backed regulatory bill is now set for debate on the Senate floor with a bipartisan group hoping to pass it as soon as this week.

“It’s the shift of approach from Gary Gensler and the SEC to this Trump administration, which has embraced our industry,” Michael Novogratz, founder and chief executive officer of Galaxy Digital, said during a Bloomberg TV interview on Wednesday. “That freed up the animal spirits both here and abroad.”

The terms of the proposed legislation were revised to include tighter restrictions on money laundering, foreign issuers, technology companies and improved consumer protections. It would also ensure domestic and foreign issuers both face the same rules.

Options traders have already built bullish positions on Bitcoin earlier this week with the $110,000 calls, $120,000 and $300,000 expiring on June 27 seeing the most open interest, or the number of outstanding contracts on Deribit. Demand for short-dated calls that are expiring before late June with the strike prices above $110,000 has surged in the past 24 hours, according to Amberdata.

Liquidations in both bullish and bearish bets on crypto assets remain moderate amid the breakout with about $200 million in the past 24 hours, according to data compiled by Coinglass.

Open interest — or outstanding contracts — for Bitcoin futures hosted by Chicago-based CME Group Inc. has seen a 23% recovery from a year-to-date low in April, while investors have poured about $3.6 billion into a group of a dozen US Bitcoin exchange-traded funds so far in May.

Bitcoin has risen about 17% so far this year, outperforming other risk assets such as US stocks. The Nasdaq 100 index is marginally lower this year.

Helping to drive the outperformance has been surging demand from Michael Saylor’s Strategy and other companies seeking to emulate its Bitcoin buying strategy. The former software maker, until recently called MicroStrategy, has acquired over $50 billion worth of the token.

Bitcoin miners, a flurry of obscure small-cap companies and public firms newly formed by crypto heavyweights are offering anything from convertible bonds to preferred stocks, giving different flavors of Bitcoin exposure to investors.

An affiliate of Cantor Fitzgerald LP is working with stablecoin issuer Tether Holdings SA and SoftBank Group to launch Twenty One Capital Inc., a company that emulates Strategy’s business model. A subsidiary of Strive Enterprises Inc. co-founded by Vivek Ramaswamy is merging with Nasdaq-listed Asset Entities Inc. to form a Bitcoin treasury company.

The struggling video-game retail GameStop Corp., which became a favorite of retail traders during the meme stock frenzy in 2021, said in March its board has approved a plan to add Bitcoin as a treasury reserve asset.