Bitcoin Jumps After Yellen's Explicit Statement Assuaged US Fears Of Crackdown

An image of the Bitcoin cryptocurrency can be seen in this illustration taken on August 6, 2021. REUTERS/Dado Ruvic/Illustration

March 9 – Bitcoin led a cryptocurrency rally on Wednesday after a premature announcement by the US Treasury Department dispelled market fears of a sudden tightening of US regulations on digital assets.

In a statement that appeared briefly on the Treasury website before it was removed, Treasury Secretary Janet Yellen said that President Joe Biden’s still-pending executive order on virtual currencies “calls for a coordinated and comprehensive approach to digital asset policy ( that) support responsible innovation.” CoinDesk has an archived version of the release.

The US Treasury Department did not immediately respond to a Reuters email request for comment on the statement after hours.

Biden is expected to sign a long-awaited executive order on Wednesday directing the Justice Department, Treasury and other agencies to study the legal and economic implications of creating a U.S. central bank digital currency. More

Last year, the White House said it was considering wide-ranging oversight of the cryptocurrency market, including an executive order, to combat the growing threat of ransomware and other cybercrime.

The inadvertently posted comments indicate that Biden’s upcoming cryptocurrency order “will take a constructive approach to regulating the digital asset industry,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

“A constructive approach from the US would be a big step for digital assets, as regulation is one of the main risks to their valuation.”

Bitcoin surged 8.9% to $42,188, the biggest gain since Feb 28, while smaller peer-to-peer Ethereum, a coin linked to the Ethereum blockchain network, gained 7% to $2,759, also a better day. this month.

U.S. exchange-traded funds (ETFs), which track bitcoin futures that received regulatory approval late last year, also surged in premarket trading. The ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF (BTF.O) are up about 9.5% each.

American crypto miners, who act as proxies for the movement of digital coins, have also moved forward. Riot Blockchain (RIOT.O) jumped 9%, Marathon Digital Holdings (MARA.O) jumped 7.5%, and cryptocurrency exchange Coinbase Global Inc (COIN.O) added 7%.

Reporting by Kevin Buckland, Tom Westbrook and Medha Singh; Additional report by Alan John; Edited by Sam Holmes and Krishna Chandra Eluri

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