Bitcoin and other cryptocurrencies rose on Wednesday following the announcement of President Joe Biden’s widely anticipated executive order on digital assets, which appeared to be favorable of the industry.
As of 6:30 a.m. ET, Bitcoin was trading at $42,118.73, up around 8% from the previous day, according to CoinDesk data. Other cryptocurrencies, such as ether, also rose sharply.
However, the initial price increase occurred prior to the executive order’s announcement. The rally began just after 6 p.m. ET on Tuesday, when the Treasury released details and a statement in reaction to President Trump’s forthcoming executive order on cryptocurrencies. Treasury Secretary Janet Yellen’s comments was quickly declassified. The statement from Yellen was then re-released on Wednesday.
Biden’s executive order aims to address the United States’ lack of a framework for the growth of cryptocurrencies, which opponents warn risks lagging behind the rest of the globe.
The executive order states, “The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating risks to consumers, businesses, the broader financial system, and the climate.”
Biden’s strategy asks for safeguards for American consumers, investors, and businesses, as well as safeguards for the US and global financial systems and systemic risk mitigation.
The executive order also instructs the US government to investigate “potential” central bank digital currency “technological infrastructure and capacity needs.” A digital currency issued by a central bank, as opposed to a cryptocurrency like bitcoin, which is not controlled or issued by a single body.
The Trump order “calls for a coordinated and comprehensive approach to digital asset policy,” Treasury Secretary Yellen said in a statement on Wednesday.
The cryptocurrency sector and investors appear to be enthusiastic about the executive action.
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, termed Yellen’s remark a “constructive approach to thoughtful crypto regulation” when it was first released ahead of the official executive order.