Bitcoin went on a rally and so did other top cryptocurrencies such as ether, BNB, solana, cardano, XRP and avalanche after US President Joe Biden signed an executive order directing key government institutions to assess the dangers and benefits of cryptocurrencies, as well as the risks posed by the issuance of a central bank digital currency.
According to a White House fact sheet, the order established “the first-ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology.”
Consumer and investor protection, financial stability and inclusion, illicit financing, US role in the global financial system and economic competitiveness, and responsible innovation were all part of Biden’s plan.
The order was a much anticipated one, and it kept the crypto enthusiasts on the edge of their seats. According to the directive, the Treasury, Commerce Department, and other central regulators must issue reports on “the future of money” and the role of cryptocurrency in it.
The crypto community greeted the news with approval, interpreting Biden’s message as the US government’s desire to regulate digital assets in a way that ensures growth.
Bitcoin has gained £2,283 in the last 24 hours, and is now trading above £31,964, up more than 8%. Ethereum, the second-largest cryptocurrency in the market, went up nearly 5% on the day, trading at £2,052 at the time of writing.
BNB, solana, cardano, XRP, and avalanche have all gained between 5% and 8% each, while Terra’s LUNA token has surpassed bitcoin, ethereum, and other cryptocurrencies by adding a whopping 20%.
Treasury Secretary Janet Yellen’s views on the directive were likewise mainly positive for the crypto industry.
In a statement, Yellen added, “President Biden’s… approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.”
Yellen went on to say that the Treasury Department would publish a study on the future of money and payment networks. “We’ll also convene the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place,” said Yellen.
Bitcoin’s gain on Wednesday was also fueled by a rebound in risk-on sentiment on Wall Street, which had been sparked by Russia’s invasion of Ukraine about two weeks ago.