Bitcoin surges after Biden signs executive order on crypto

Bitcoin surged more than 9% on Wednesday after President Biden signed an executive order directing federal agencies to scrutinize cryptocurrency regulations – a sign that the world’s most powerful economy is moving towards digital coin adoption.

Treasury Secretary Janet Yellen said the effort would “promote a fairer, more inclusive and more efficient financial system” while tackling illicit financing and preventing risks to financial stability and national security.

Biden’s executive order was accidentally leaked early after a statement was posted on the Treasury Department’s website Tuesday night.

The March 9 statement has been removed.

Biden’s executive order is the first time the federal government has been formally asked to develop a strategy to regulate the digital currency.

The President wants the Justice Department to look into whether the government needs to enact a new digital version of the US dollar.

Yellen’s leaked statement led to a sharp surge in Bitcoin’s value. The digital currency is up more than 10% overnight on Tuesday.

As of midday Wednesday, one bitcoin was valued at more than $42,100.

Cryptocurrency enthusiasts welcomed Biden’s announcement.

“Biden’s executive order appears to be pushing back hardline dealings with crypto, especially as it seeks to understand why the current financial system may not meet consumer needs,” Han Kao, CEO of Sanctor Capital, an early-stage crypto investor, said Post Office.

“Exploring how blockchain technologies and cryptocurrencies can be leveraged across the financial infrastructure will reduce the overhead on the system as a whole and make transactions, remittances and cross-border payments much more efficient.”

As for the Federal Reserve dealing with digital assets, the central bank published a paper in January it said a digital currency “would best meet the needs of the country” through a model where banks or payment companies create accounts or digital wallets.

On Tuesday, the Treasury Department said its financial literacy department will work to develop consumer-friendly materials to help people “make informed decisions about digital assets.”

“History has shown that without proper safeguards, private forms of money can potentially pose risks to consumers and the financial system,” said Nellie Liang, undersecretary for domestic finance.