Biden signs Bitcoin executive order. Bitcoin sharply up

By FintechNews staff

Bitcoin and other cryptocurrencies were higher Wednesday after President Joe Biden announced his highly anticipated executive order on digital assets that appeared to take a supportive stance toward the industry.

Bitcoin was last trading at $41,944, around 8% higher, according to Coin Metrics. Other cryptocurrencies including ether were also sharply higher.

U.S. President Joe Biden signed an executive order (E.O.) on Wednesday that actively calls for policy on Bitcoin and other cryptocurrencies as well as “urgent” action towards developing a CBDC. The order outlines that regulatory agencies will work in a “whole-of-government” approach to combat illicit use of Bitcoin and other cryptocurrencies and further climate change protections and innovation while protecting investors through policy.

Honing in on illicit use of cryptocurrency, the order seeks to properly regulate stablecoins and other digital payment methods that could break traditional barriers.

A “Future of money and payments systems” report will be researched by all relevant agencies and published by the Secretary of Treasury.

“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,” the executive order says.

The executive order also directs the U.S. government to explore “the technological infrastructure and capacity needs for a potential” central bank digital currency. That is a digital currency that would be issued by a central bank unlike a cryptocurrency such as bitcoin which is not controlled or issued by a single entity. Treasury Secretary Yellen said in her statement Wednesday that the executive order “calls for a coordinated and comprehensive approach to digital asset policy.”

The executive order appears to be broadly welcomed by the cryptocurrency industry and investors.