Bitcoin surged to climb to US$42,273 after US Treasury Secretary Janet Yellen published remarks showed that President Joe Biden’s impending crypto order would take a constructive approach to regulate the digital asset industry.
According to analysts, the executive order, which would attempt to regulate cryptocurrency, caused fear and stress among traders, with rumours of heavy regulation one of many reasons for the recent bear market.
The now-deleted statement, which was meant to be issued today, said that “a presidential executive order on cryptocurrencies would support responsible innovation as it coordinates US policy across agencies.”
“Under the executive order, Treasury will partner with interagency colleagues to produce a report on the future of money and payment systems.”
Marcus Sotiriou, an analyst at the UK-based digital asset broker GlobalBlock, said the order seems “relatively benign, hence giving the market some clarity.”
He adds that the comments made by Yellen are a “positive indication of what’s to come for regulation in the US.”
Concerns, however, remain over illegal and illicit activity, especially over rumours that Russian oligarchs and those facing sanctions are using crypto to bypass economic punishments.
"The executive order will address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy,” the statement added.
As is usually the case, the alt-coins followed the lead set by Bitcoin, regaining some of their losses.