Biden Crypto Order Signed, How Will The Latest Regulatory Moves Affect Bitcoin?
2022-03-14 12:09:57
What Influence Does Regulation Have On Bitcoin
There have been rumors in the market for a long time that the US government is planning to introduce cryptocurrency regulations. However, it was reported that the White House officials and Treasury Secretary Janet Yellen had different positions on this issue, which led to delays in the policy rollout.
At the beginning of this week, the crypto market suddenly got wind of the executive order overnight after the Treasury accidentally put out a since-deleted statement calling it “historic” and releasing some of the details ahead of time. And finally, U.S. President Joe Biden signed this long-awaited executive order on Wednesday calling on the government to examine the risks and benefits of cryptocurrencies.
According to a White House fact sheet, the order calls on federal agencies to take a unified approach to regulation and oversight of digital assets from six key areas: Consumer and investor protection, Financial stability, Illicit activity, U.S. competitiveness on a global stage, Financial inclusion and Responsible innovation.
Market Reaction to Crypto Executive Order
The crypto executive order marks the first concrete steps by the White House to regulate digital currency. Jeremy Allaire, CEO of crypto firm Circle, commented on Twitter:“This is a watershed moment for crypto, digital assets, and Web 3, akin to the 1996/1997 whole of government wakeup to the commercial internet.”
Crypto investors appeared to agree as the price of Bitcoin surged above $42,000 Wednesday on optimism over the action. Data from Gate.io, a leading trading platform for BTC and others, shows that the opening price of BTC on March 9th was $38,740.78. It responded quickly and significantly when the news came out by surging to a daily high of $42,573.44. In general, Bitcoin price increased $3,209.99, which is more than 8% on that day alone with the closing price of $41,949.77.
“Markets usually respond this way in face of uncertainty about moves that may be fundamental to the market,” says Tal Elyashiv, founder of SPiCE VC, a venture capital fund that focuses on blockchain and tokenization.
But the fundamentals of cryptocurrency investing remain the same. Bitcoin price fell back overnight as some of the initial excitement around the crypto executive order faded.
Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said the executive order was “overall more neutral.” “Hence while the market reacted positively to the statement, momentum wasn’t strong enough to surpass resistance at $42,000,” he said.
At time of writing, Bitcoin price live on Gate.io is down more than 5% at $39,000. Ayyar added that “What we can see is that Bitcoin is broadly range bound, unable to make a strong move on either side, coupled with ongoing uncertainty about Ukraine.”
Sara Xi, chief product officer at Prime Trust agreed that the crypto executive order failed to be the main price driver as “There are multiple factors at play right now. The broader equity market is down, reacting to macro level events. And those same macro level events are usually also driving crypto markets down because a lot of people are still viewing crypto as an investment vehicle”.
There have been rumors in the market for a long time that the US government is planning to introduce cryptocurrency regulations. However, it was reported that the White House officials and Treasury Secretary Janet Yellen had different positions on this issue, which led to delays in the policy rollout.
At the beginning of this week, the crypto market suddenly got wind of the executive order overnight after the Treasury accidentally put out a since-deleted statement calling it “historic” and releasing some of the details ahead of time. And finally, U.S. President Joe Biden signed this long-awaited executive order on Wednesday calling on the government to examine the risks and benefits of cryptocurrencies.
According to a White House fact sheet, the order calls on federal agencies to take a unified approach to regulation and oversight of digital assets from six key areas: Consumer and investor protection, Financial stability, Illicit activity, U.S. competitiveness on a global stage, Financial inclusion and Responsible innovation.
Market Reaction to Crypto Executive Order
The crypto executive order marks the first concrete steps by the White House to regulate digital currency. Jeremy Allaire, CEO of crypto firm Circle, commented on Twitter:“This is a watershed moment for crypto, digital assets, and Web 3, akin to the 1996/1997 whole of government wakeup to the commercial internet.”
Crypto investors appeared to agree as the price of Bitcoin surged above $42,000 Wednesday on optimism over the action. Data from Gate.io, a leading trading platform for BTC and others, shows that the opening price of BTC on March 9th was $38,740.78. It responded quickly and significantly when the news came out by surging to a daily high of $42,573.44. In general, Bitcoin price increased $3,209.99, which is more than 8% on that day alone with the closing price of $41,949.77.
“Markets usually respond this way in face of uncertainty about moves that may be fundamental to the market,” says Tal Elyashiv, founder of SPiCE VC, a venture capital fund that focuses on blockchain and tokenization.
But the fundamentals of cryptocurrency investing remain the same. Bitcoin price fell back overnight as some of the initial excitement around the crypto executive order faded.
Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, said the executive order was “overall more neutral.” “Hence while the market reacted positively to the statement, momentum wasn’t strong enough to surpass resistance at $42,000,” he said.
At time of writing, Bitcoin price live on Gate.io is down more than 5% at $39,000. Ayyar added that “What we can see is that Bitcoin is broadly range bound, unable to make a strong move on either side, coupled with ongoing uncertainty about Ukraine.”
Sara Xi, chief product officer at Prime Trust agreed that the crypto executive order failed to be the main price driver as “There are multiple factors at play right now. The broader equity market is down, reacting to macro level events. And those same macro level events are usually also driving crypto markets down because a lot of people are still viewing crypto as an investment vehicle”.
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