BlockBeats News, August 20, the crypto market saw a rebound, with the price of Bitcoin briefly surpassing $69,900, reaching this level for the first time in two months; Ethereum rose by about 19%, reclaiming the $2,200 level.

The market rally was mainly driven by two key policy announcements. The U.S. Treasury Department announced that it will at least double the size of long-term Treasury repurchase agreements, with the single transaction limit for repurchases of 10- to 20-year and 20- to 30-year Treasuries increasing from $2 billion to $4 billion. This measure will be implemented starting on September 9 and will continue until the end of this refinancing quarter.

The U.S. Treasury stated that this move is aimed at providing more liquidity support to the long-term Treasury market.

At the same time, the U.S. Securities and Exchange Commission (SEC) proposed a new regulatory framework for issuing crypto assets, planning to provide an exemption pathway for some investment contract-related crypto asset issuances. Under the proposal, qualifying issuers can raise a maximum of $5 million within 4 years or up to $75 million annually, provided they meet disclosure requirements.

Fueled by favorable policies, the crypto market experienced a broad rally, with mainstream assets such as Solana and XRP seeing gains of over 5% in the past 24 hours.

Market participants believe that while the U.S. Treasury's increase in Treasury repurchase size differs from traditional quantitative easing, it may still enhance liquidity in the long-term bond market, providing a more favorable environment for risk assets. In addition, VanEck previously stated that the Bitcoin correction phase may be nearing its end, historical cycle data indicates that Bitcoin may be entering a potential accumulation phase.

Crypto-related stocks also surged in sync, with Fold Holdings up nearly 20%, BitGo and American Bitcoin up around 15%, Bitcoin treasury reserve company Strategy and Ethereum treasury reserve company Bitmine up approximately 10%.