The U.S. President’s executive order on the cryptocurrency market has been speculated about for quite some time. While it is partially shrouded in secrecy, a Treasury Department response to it has already emerged. This has prompted a positive reaction from the markets.
Despite the fact that Joe Biden’s official decree on the regulation of the cryptocurrency market is not yet known, Janet Yellen’s response to it has already appeared. The publication of the position of the US Treasury Secretary was obviously not intentional. Most likely, it was due to an error of some employee, as the content was removed shortly afterwards. Nevertheless, the presented material shed more light on the current perception of cryptocurrencies by those in power.
According to the records resulting from the statement on digital assets, Janet Yellen calls for efforts to support innovation, while being cautious and taking into account risks regarding the operation of the industry. It also noted the Treasury Department’s global focus, as it plans to “work with international partners to promote robust standards and a level playing field.”
Yellen’s statement also included a rather interesting sentence, albeit one that has stirred mixed emotions in the global market:
“Treasury will work to promote a fairer, more inclusive, and more efficient financial system, while building on our ongoing efforts to combat illicit finance and prevent threats to financial stability and national security.”
According to some experts, the wording of her statement may indicate that the Executive Order will be much more market-friendly than previously expected. Nevertheless, the US government may be planning to leave itself a kind of wicket, in order to maintain the status of the US dollar as the strongest currency for global settlements.
Bitcoin’s strong reaction
Both Janet Yellen and Joe Biden were not famous for their favorability towards crypto markets. Meanwhile, the premature publication of the statement indicates that the US government is taking Bitcoin more and more seriously. The new measures will include a report “on the future of money and payment systems.” According to Yellen, the executive order could bring significant benefits to the nation, consumers, as well as businesses. The new measures are also supposed to counter illegal financing, create a system of consumer and investor protection. What seems mysterious, on the other hand, is the potential countering of threats to the financial system and the economy.
On the first day after the statement was published, the market reacted very vividly. At the time of this writing, Bitcoin is up 9.87% at $42,591.68.