By
Temitope Olatunji
April 24th, 2024
The crypto market gives a thumbs up to Biden’s crypto executive order which sets to bring clear regulations in place. This is likely to boost institutional participation in the crypto space.
On Wednesday, March 9, the Joe Biden administration signed the much-awaited executive order on cryptocurrencies. The executive order points federal agencies to work on regulations for the crypto space.
This is for the first time that any federal agencies will be directly involved in dealing with crypto. Further, it sets a clear tone of an accommodative stand for digital assets in the US financial system.
On Wednesday, the crypto market reacted positively with Bitcoin (BTC) gaining over 8% and moving past $41,500 levels. Other cryptocurrencies from the altcoin space posted similar gains. The Ethereum (ETH) price surged 8% moving past $2,750 levels. However, Terra’s LUNA marked the biggest gains on Wednesday. The LUNA price shot up by over 20% moving closer to $100 levels.
However, yesterday’s crypto market and Bitcoin rally remain short-lived. As of press time, Bitcoin (BTC) is down 5% dropping under $40,000 once again as volatility hits hard. The broader cryptocurrency market is also trading down 5% but Terra’s LUNA has managed to hold back the losses and is currently trading at $94.
Janet Yellen Praises Crypto Executive Order
US Treasury Secretary Janet Yellen’s comments leaked a day before the official release of the executive order. Yellen calls President Biden’s order “historic” adding that it “calls for a coordinated and comprehensive approach to digital asset policy”.
Yellen added that the executive order will fuel “responsible innovation” that could benefit the nation, consumers, and businesses. She further noted that the executive order addresses concerns relating to illicit finance.
The US Treasury is keen on working with other agencies as well as crypto experts and market participants. Yellen said:
“Treasury will work to promote a fairer, more inclusive, and more efficient financial system, while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security.”
Other market players also welcomed this historic order from President Joe Biden. Han Kao, CEO of Sanctor Capital, told the New York Post:
“Biden’s executive order seems to be reeling back the heavy-handed approach to crypto especially as it seeks to understand how the current financial system may not be meeting the needs of consumers”.
This executive order will bring clear regulations in place encouraging institutions to participate in the crypto space.