Crypto Price Surge: Biden’s Executive Order on Cryptocurrencies, Wall Street Rebound Boosts Bitcoin Price by $3,000

Crypto Price Surge: Biden's Executive Order on Cryptocurrencies, Wall Street Rebound Boosts Bitcoin Price by $3,000

(Kitco News) Bitcoin has seen an impressive rise after US President Joe Biden signed an executive order calling on key government agencies to identify the risks and benefits of cryptocurrencies and the dangers associated with the creation of the digital dollar. central bank.

The order outlines “the first-ever whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology,” according to a White House fact sheet.

Biden’s measure focused on six key priorities: consumer and investor protection, financial stability, illicit finance, US leadership in the global financial system and economic competitiveness, financial inclusion and innovation. responsible.

This order was widely expected and kept crypto participants on their toes. The newly signed measure asked the Treasury Department, Commerce Department, and other central agencies to release reports on “the future of money” and the role crypto plays in it.

The crypto space reacted positively to the news, as Biden’s message was seen as the US government wanting to regulate digital assets in a way that ensures long-term growth.

“The United States must maintain its technology leadership in this rapidly growing space, support innovation while mitigating risks to consumers, businesses, the broader financial system, and the climate. And it must play a leadership role. forefront in international engagement and global governance of digital assets consistent with democratic values ​​and the global competitiveness of the United States,” the White House fact sheet states.

The price of bitcoin has surged $3,000 in the past 24 hours, last trading near $42,000, up more than 8% on the day. Ethereum, the world’s second-largest cryptocurrency, also rose more than 5% on the day, last trading at $2,697.97.

“The order appears to be relatively benign, which provides some clarity to the market. This is the “first-ever whole-of-government approach” to overseeing the sector in the United States, as it involves the Treasury, the Supervisory Board of financial stability, Federal Reserve and national security agencies to work on relevant sections of the crypto ecosystem,” said Marcus Sotiriou, analyst at GlobalBlock.

Treasury Secretary Janet Yellen’s comments regarding the order were also seen as largely favorable to the space.

“President Biden’s approach…will support responsible innovation that could result in substantial benefits for the nation, consumers and businesses,” Yellen said in a statement. “It will also address the risks associated with illicit finance, protect consumers and investors and prevent threats to the financial system and the economy in general.”

Yellen added that the Treasury Department would produce a report on the future of currency and payment systems. “We will also convene the Financial Stability Oversight Board to assess potential risks to the financial stability of digital assets and determine if appropriate safeguards are in place,” she said.

Bitcoin’s rally on Wednesday was also fueled by a rebound in risk sentiment on Wall Street following heavy selling triggered by Russia’s invasion of Ukraine nearly two weeks ago.

“Stock markets have a bid today as markets cling to any glimmer of hope for a possible step towards de-escalation when Ukrainian and Russian finance ministers meet in Turkey tomorrow,” Anu said. Gaggar, Commonwealth Financial Network’s Global Investment Strategist.

A day earlier, Ukrainian President Volodymyr Zelenskiy said he had “calmed down” on the issue of his country’s NATO membership.

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