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Bitcoin jumps after apparent Yellen statement quells U.S. clampdown fears

Bitcoin jumps after apparent Yellen statement quells U.S. clampdown fears

In response to what looked to be a prematurely publicized United States Treasury statement, bitcoin led to a surge in cryptocurrencies on Wednesday. Market concerns of a sudden tightening of United States restrictions governing digital assets were allayed by the announcement.

Secretary of the Treasury Janet Yellen said a still-pending executive order on virtual currencies from President Joe Biden “calls for a coordinated and comprehensive approach to digital asset policy (that) will support responsible innovation” in a statement that briefly appeared on the Treasury website before it was taken down. CoinDesk has an archived version of the press release available.

A request for comment on the statement made outside of business hours did not get a response from the United States Treasury Department in time for publication.

According to a source familiar with the matter, Vice President Joe Biden is expected to sign a long-awaited executive order this week directing the Justice Department, the Treasury Department, and other agencies to study the legal and economic ramifications of creating a central bank digital currency in the United States.

As a result of the rising danger of ransomware and other criminality, the White House said last year that it was exploring a comprehensive regulatory framework for the cryptocurrency industry, which may include an executive order.

According to Matthew Dibb, COO of Singapore crypto platform Stack Funds, the statement “seems to indicate that (U.S. authorities) will not be taking any swift, major regulatory actions as of yet, and will likely be taking a more coordinated and objective approach over time,” causing cryptocurrencies to rally.

Bitcoin gained 7.2 percent to $41,515 and is on pace to have its best day since Feb. 28. The smaller peer ether gained 5.3 percent to $2,715, putting it on track to post its best day since Feb. 28 as well.

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