Bitcoin (BTC) Reclaims $42k Following Positive Comments from U.S. Treasury

An inadvertently published statement from the United States Treasury Secretary Janet Yellen concerning the highly anticipated presidential executive order on bitcoin (BTC) and other cryptocurrencies, has ushered in a fresh air of positivity into the crypto markets, sending the bitcoin price back above $42k at press time.

Biden’s Executive Order to Foster Responsible Crypto Innovation

After several weeks of fear and uncertainties as per the possible outcome of the impending president Joe Biden executive order on cryptocurrency, market participants can now finally breathe a sigh of relief, if the recently leaked remarks of Treasury Secretary Janet Yellen are anything to go by. It will be recalled that earlier in January 2022, reports emerged that president Biden’s administration was making serious plans to regulate Bitcoin and other cryptocurrencies as a ‘matter of national security,’ with the White House working on an executive order that would task federal agencies with assessing the possible risks and benefits of blockchain-based digital currencies. At the time, sources close to the government made it clear that the White House gauges that cryptocurrencies have economic implications for national security and as such the regulatory efforts must involve the State Department, Treasury Department, National Economic Council, Council of Economic Advisers and the White House National Security Council. Fast forward to March 8 and a (now removed) statement from U.S. Treasury Secretary Janet Yellen has given hints on how the agency plans to implement the directives of the long-awaited executive order on crypto. According to the statement, “Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy.”

“This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses. It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy,” Yellen added.

Crypto Markets React Positively

Importantly, the Treasury has stated categorically that it will work with crypto industry stakeholders to undertake the task and would do its possible best to foster financial inclusivity.

“As we take on this important work, we’ll be guided by consumer and investor protection groups, market participants, and other leading experts. Treasury will work to promote a fairer, more inclusive, and more efficient financial system while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security,” Yellen concluded.

Notable figures in the cryptocurrency industry, including Gemini Trust’s Cameron Winklevoss, have described Biden’s executive order as a positive move.

“I applaud this constructive approach to thoughtful crypto regulation and look forward to working together with the various stakeholders to ensure that the US remains a leader in crypto,” he tweeted. 

The positive development has triggered a resurgence in the price of bitcoin in the past 24-hours, with the orange coin trading around $42,133 at the time of writing this report. Other established cryptoassets, including ether (ETH +7.06 percent), BNB (BNB +2.46) and Terra (LUNA +19 percent) have posted decent gains in the last 24-hours, according to CoinMarketCap.