The value of Bitcoin increased Wednesday as President Joe Biden signed a cryptocurrency executive order that was praised by proponents of the digital assets.
Bitcoin rose by nearly 9% on Wednesday afternoon to nearly $42,000 after news of the executive order’s contents first leaked Tuesday evening. Ethereum, the second-largest cryptocurrency, was up more than 5%, and Cardano rose more than 5.7% after Biden signed the order.
The increases come after several days of declines that saw Bitcoin sinking from more than $44,000 to a recent trough of $37,300 amid uncertainty surrounding the Russian war in Ukraine.
Details about the executive order, which was signed Wednesday afternoon, were first obtained by some in the media on Tuesday after the Treasury Department accidentally published a news release on the order a day early.
BIDEN SIGNING CRYPTOCURRENCY EXECUTIVE ORDER THAT PAVES WAY FOR US GOVERNMENT ‘COIN’
The executive order, titled “Ensuring Responsible Development of Digital Assets,” calls upon the federal government to analyze the benefits and risks of cryptocurrencies, which have become a hugely popular emerging asset class that has gained massive traction among investors over the past few years.
“The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk,” the White House said in a fact sheet.
The order outlines a national policy for cryptocurrencies with six key priorities — consumer and investor protection, financial stability, illicit finance, U.S. leadership in the global financial system and economic competitiveness, financial inclusion, and responsible innovation.
It also urges the Federal Reserve to examine the risks and benefits of creating a U.S. Central Bank Digital Currency, which would be tethered directly to the country’s central banking system.
Eloisa Marchesoni, an angel investor and cryptocurrency consultant, told the Washington Examiner that the order is “further affirmation that when serious officials take a sober look at crypto, the reaction is not to light their hair on fire, but instead to recognize it as an innovation that the U.S. will want to foster and lead while mitigating obvious risks.”
She said that the executive order signaled to her that the United States sees cryptocurrency as a legitimate, serious, and important part of the economy and of society, a perception that is likely shared by many others given the sizable price bounce on Tuesday and Wednesday.
“While the crypto punks are anti-regulation due to concerns that it could hurt the decentralized nature of it and self-sovereignty of the people using it, the price increase says the contrary: Experts and holders in general feel like regulation will actually be a positive thing for crypto adoption, safety, and more,” Marchesoni said.
“And if the average investor feels much more confident in the crypto space being safer, there could be tremendous growth here,” she added.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Bitcoin investors have been in for a wild ride over the past year or so.
The flagship cryptocurrency rallied early on in 2021 and hit nearly $65,000 in April before it fell back from that peak. Last summer was tough for the cryptocurrency, which struggled over concerns about regulation, although its value again ballooned near the end of September and rallied to an all-time high of $69,000 in November. Bitcoin is now worth about 39% less than it was at its zenith.
