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Bitcoin and other cryptocurrencies rose after the US Treasury apparently released details of an executive order from President Joe Biden that appeared to take a pro-digital asset stance.
Bitcoin was trading at $41,584.21, nearly 9% higher as of 2:17 a.m. ET, according to data from CoinDesk. Other cryptocurrencies, including ether, were also significantly higher.
The rally started just after 6 p.m. ET Tuesday after the Treasury released details and a statement online in response to an upcoming executive order from the US President on cryptocurrencies. Treasury Secretary Janet Yellen’s statement was unpublished shortly after.
Reuters and other news outlets reported earlier this week that a Biden cryptocurrency command was imminent.
The now-deleted Treasury statement said the executive order called for a comprehensive approach to digital asset policy and that government agencies would coordinate their work.
Traders are still awaiting the final executive order, but the short-lived statement from the Treasury, which appeared to support cryptocurrencies, was enough to boost optimism.
“The leaked Treasury statement was well received by the crypto market as it appears to be focused on developing the industry, rather than imposing unrealistic regulations,” market analyst Yuya Hasegawa told CNBC. on Japanese cryptocurrency exchange Bitbank.
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, called the executive order a “constructive approach to thoughtful crypto regulation.”
While countries like China have sought to eliminate cryptocurrency trading, others like El Salvador have embraced it. But the United States currently lacks a high-level framework to develop and regulate cryptocurrencies, raising fears that it may be left behind.
Last year, cryptocurrency exchange Coinbase said the United States should create a new regulator to oversee the digital asset market.