One of the biggest criticisms of cryptocurrency at large (particularly the ever-popular Bitcoin) is that there’s no market regulation, which creates an extremely volatile market.
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But Wednesday, U.S. President Joe Biden signed an executive order that calls for federal agencies to begin exploring regulatory practices for crypto, which sent Bitcoin skyrocketing over a whopping 9% by late afternoon.
The notice, put out by the White House, outlines the six major “priorities” that crypto regulation will seek to cover, including maintaining a strong leadership position in global financial markets and protection for both consumers and investors.
“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 release states. “The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate. And, it must play a leading role in international engagement and global governance of digital assets consistent with democratic values and U.S. global competitiveness.”
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As of early Wednesday evening, Bitcoin was still up an impressive 8.62% in a 24-hour period, landing at around $42,807, per CoinBase.
The White House’s release also said that the government would explore the possibility of creating a unified U.S. Central Bank Digital Currency.
“The Administration will continue work across agencies and with Congress to establish policies that guard against risks and guide responsible innovation, with our allies and partners to develop aligned international capabilities that respond to national security risks, and with the private sector to study and support technological advances in digital assets,” the government said.
Biden’s executive order is the first of its kind, nodding to the fact that crypto very may well be the way of payment in the future.
This goes in opposition with the Central Bank of Russia that attempted to ban crypto in the country last January.