More On: Bitcoin
Senators and regulators explain why the $60 billion collapse of a major cryptocurrency is not the industry's Bear Stearns moment
Bitcoin and other cryptocurrencies rose on Wednesday after President Joe Biden issued his long-awaited executive order on digital assets, which appeared to be supportive of the industry.
According to Coin Metrics, Bitcoin was last trading at $42,284, up almost 9%. Other cryptocurrencies, like as ether, were also significantly higher.
However, the original price increase occurred prior to the notification of the executive order. The rally began just after 6 p.m. ET on Tuesday, when the Treasury published facts and a statement online in response to the anticipated executive order on cryptocurrencies from the United States' president. Treasury Secretary Janet Yellen's statement was quickly removed from the internet. Yellen's statement was then re-released on Wednesday.
Biden's executive order aims to address the lack of a framework for the growth of cryptocurrencies in the United States, which opponents warn risks lagging behind the rest of the globe.
"The United States must maintain technological leadership in this fast emerging field, encouraging innovation while minimizing risks to consumers, businesses, the broader financial system, and the climate," according to the executive order.
Biden's proposal asks for safeguards to protect American consumers, investors, and businesses, as well as safeguards to protect the US and the global financial system and prevent systemic risk.
In addition, the executive order requires the US government to investigate "the technological infrastructure and capacity requirements for a prospective" central bank digital currency. That is a digital currency issued by a central bank, as opposed to a cryptocurrency like bitcoin, which is not controlled or issued by a single entity.
In a statement issued Wednesday, Treasury Secretary Yellen stated that the executive order "calls for a coordinated and comprehensive approach to digital asset policy."
The executive order appears to have received widespread support from the cryptocurrency industry and investors.
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, termed Yellen's remark a "positive approach to smart crypto regulation" when it was first released ahead of the official executive order.
I applaud this constructive approach to thoughtful crypto regulation and look forward to working together with the various stakeholders to ensure that the US remains a leader in crypto.— Cameron Winklevoss (@cameron) March 9, 2022
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