Crypto Market Surges Amid Treasury Buybacks and SEC Regulation Proposal

The cryptocurrency market surged on August 19 as two significant policy announcements boosted investor optimism. The U.S. Treasury revealed it would double its long-term bond buybacks, targeting 10-, 20-, and 30-year debt to improve liquidity in the market.

The expanded buyback program, set to begin September 9, 2026, will increase maximum size from $2 billion to $4 billion. This move comes as U.S. debt hit a record $39.99 trillion in August 2026, intensifying scrutiny of fiscal pressures.

The Treasury's announcement eased pressure on bond yields, with the 30-year Treasury yield plummeting from 5.26% to 5.18%. Lower long-duration bond yields typically reduce competition for investor capital and make risk assets like crypto more attractive.