Bitcoin ($BTC) Price Surges 8% as Crypto Executive Order Looks to Support 'Responsible Innovation'

The price of the flagship cryptocurrency Bitcoin ()$BC1 moved up more than 8.5% in the last 24-hour period after a now-deleted statement on the White House’s long-awaited cryptocurrency executive order suggested it is looking to support “responsible innovation.”

Data shows BTC’s price jumped to a high near the $42,500 after the statement on the executive order, from U.S. Treasury Secretary Janet Yellen, was published. It has since dropped to around $42,000 where it’s currently trading.

Bitcoin’s rally was accompanied by other cryptoassets, with CryptoCompare data showing Ethereum ($ETH) is up over 5.4% in the last 24 hours, while Terra ($LUNA) jumped 21%. Other top cryptoassets including Binance Coin ($BNB), Solana ($SOL), and Avalanche ($AVAX) also saw gains of 2.5%, 4%, and 8% respectively.

The crypto market rally started with Yellen’s statement, which noted that the long-awaited executive order on cryptoassets calls for a “coordinated and comprehensive approach to digital asset policy.” It adds that  this approach will “support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses” 

It also mentions that it will address risks related to illicit finance, consumer and investor protections, and threats to the financial system and the broader economy. The Treasury Department is set to partner with “interagency colleagues to produce a report on the future of money and payment systems” and to “convene the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place:”

Yellen’s statement concludes that the work will be guided by consumer and investor protection groups as well as market participants and leading experts. The Treasury Department, it says, will promote a fairer, more inclusive, and more efficient financial system.

Speaking to CNBC Yuya Hasegawa, a market analyst at Japanese cryptocurrency exchange Bitbank, said the leaked Treasury statement was welcomed by the market “as it seems to focus on the development of the industry, rather than on imposing unrealistic regulations.”

Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, applauded the “constructive approach to thoughtful crypto regulation.”

As reported some analysts remain bullish on BTC. Earlier this month former White House director of Communications Anthony Scaramucci, who is the founder and managing partner of global alternative investment firm SkyBridge Capital, reaffirmed he believes the price of BTC will hit $100,000 by 2024.

Billionaire investor Bill Miller, founder, and chairman of investment firm Miller Value Partners, has suggested that the current collapse of Russia’s fiat currency, the ruble, is “very bullish for bitcoin” as the flagship cryptocurrency’s value is determined by global supply and demand and could see other countries decide to use it as a reserve asset.

DISCLAIMER
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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Featured image via Pixabay

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