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Bitcoin and other cryptocurrencies surged after the US Treasury apparently released details of President Joe Biden’s executive order that appeared to maintain a stance on digital assets.
Bitcoin was trading at $41,584.21, up almost 9% as of 2:17 am ET, according to CoinDesk. Other cryptocurrencies, including Ethereum, also surged.
The rally began just after 6 p.m. ET on Tuesday after the Treasury released details and a statement online in response to the upcoming U.S. executive order on cryptocurrencies. Treasury Secretary Janet Yellen’s statement was not released shortly thereafter.
Earlier this week, Reuters and other news outlets reported that a Biden order on cryptocurrencies is imminent.
A now-deleted Treasury statement said the decree calls for a comprehensive approach to digital asset policy and that government agencies will coordinate their work.
Traders are still waiting for a final executive order, but a fleeting statement from the Treasury Department that seemed to support cryptocurrencies was enough to boost optimism.
“The leaked treasury statement was welcomed by the crypto market as it appears to be focused on developing the industry rather than imposing unrealistic regulations,” Yuya Hasegawa, a market analyst at Japanese cryptocurrency exchange Bitbank, told CNBC.
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, called the decree “a constructive approach to thoughtful regulation of cryptocurrencies.”
While countries like China have sought to destroy cryptocurrency trading, others like El Salvador have embraced it. But there is currently no high-level structure in the US to develop and regulate cryptocurrencies, raising concerns that it could be left behind.
Last year, cryptocurrency exchange Coinbase said the US should create a new regulator to oversee the digital asset market.