- Treasury Secretary Janet Yellen said the order’s approach “could result in substantial benefits for the nation, consumers, and businesses”
- Equity markets rose, too, despite continuing tensions in Ukraine, with the S&P 500 posting a 2.57% gain
Crypto markets notched sizable gains Wednesday as the White House unveiled President Biden's long-awaited executive order on digital assets.
Investors were quick to pinpoint an accompanying statement as mostly positive, including it calling the rise of digital assets "an opportunity to reinforce American leadership in the global financial system and at the technological frontier."
"Today, @POTUS signed an Executive Order on crypto-assets," Securities and Exchange Commission Chair Gary Gensler tweeted. "I look forward to collaborating with colleagues across the government to achieve important public policy goals: protecting investors & consumers, guarding against illicit activity & helping ensure financial stability."
The Department of the Treasury also released a statement from Treasury Secretary Janet Yellen that was later taken down.
While Yellen addressed the potential issues digital assets may introduce, she also said creating legislation could help both consumers and businesses.
"President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy," Yellen said. "This approach will support responsible innovation that could result in substantial benefits for the nation, consumers and businesses."
The US move to regulate crypto — in what most industry watchers dubbed a fair manner — caused bitcoin to swell. The cryptocurrency was up as much as almost 10% intraday, before ending stock trading with a 7.96% pop.
The rest of the crypto market followed, sending ether up 4.2% and the overall cryptocurrency market capitalization up 5.72%.
THORchain, a decentralized liquidity protocol, saw its native RUNE token jump nearly 30% on the day, making it the largest gainer among the top 100 cryptocurrencies by market cap.
Equity markets rose, too, despite continuing tensions in Ukraine, with the S&P 500 posting a 2.57% gain. The Nasdaq and Dow also increased, pushing up 3.58% and 2%, respectively.
Story: Dubai Is the Latest Government To Roll Out Crypto Law, Set Up Regulator
- Dubai Financial Services Authority reveals report on crypto token regulation
- Proposal calls for “privacy tokens” and “algorithmic tokens” to be banned
Story: DeFi Hedge Fund, Fresh off Profitable Private Bets, Launches First Venture Vehicle
- The launch is one of a growing number from hedge fund managers focused on digital assets looking to increase their exposures to crypto private markets
- The firm invested in Animoca Brands, the parent company of The Sandbox metaverse, when the company was valued at $1 billion
Story: Pantera Capital’s Blockchain Fund Has $1B in Commitments
- Pantera partner calls gaming “a huge sector for years to come” in the crypto space
- The fund’s venture equity deals range from $1 million to about $40 million, typically as part of seed, Series A or Series B funding rounds
Story: Biden Signs Crypto Executive Order Promoting “Responsible Innovation”
- Biden calls for a unified approach on regulating and evaluating cryptocurrencies
- Industry members welcome regulation, but ask that their voices be heard
Bitcoin has experienced a series of higher lows, suggesting that the worst may be behind the cryptocurrency. Investors should still be wary of volatility stemming from the Ukraine conflict and the coming mid-March Fed meeting on interest rates.
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