Share prices of cryptocurrency-related companies have soared as the broader market reacted positively to the long-awaited executive order by United States President Joe Biden.. This will require US federal agencies to create a regulatory framework for digital assets, as well as explore a future digital dollar.
Coinbase was up 10.5% at the close of the market, while shares of Bitcoin evangelist Michael Saylor’s MicroStrategy gained 6.4%according to TradingView.
Blockchain-related exchange-traded funds (ETFs) also enjoyed renewed market confidence in cryptocurrencies.: ProShares Bitcoin Strategy ETF gained 10% and Valkyrie Bitcoin Strategy ETF closed 10.3% higher.
Cryptocurrency mining companies enjoyed the highest profits; shares of Riot Blockchain Inc. rose 11.2% and Marathon Digital Holdings Inc. 13.5%. Jefferies analyst Jonathan Peterson restored his buy rating for Marathon Digital Holdings Inc. in a note to clients, stating that Cryptocurrency miners are likely to make more money now that the US government is “more formally recognizing, engaging with, and apparently supporting” the digital asset industry.
Although swings of 10% are common in cryptocurrencies, these are unusually volatile movements in traditional markets.. Despite last day’s rally, Coinbase is still down almost 48% from its direct listing in April of last year. Riot Blockchain is in an even worse position; it is currently down 76% from its most recent high in February 2021.
Bitcoin (BTC) itself jumped 9% after details regarding the executive order leaked before settling back to the current 5% gain.
Aside from the immediate positive price action, the executive order was seen by most investors as if not a positive for the crypto industry, then at least a lot less bad than feared. President Biden called the rise of digital assets “an opportunity to bolster American leadership in the global financial system and on the technological frontier”.
The order did not explicitly indicate what kind of regulatory measures could be expected, but the general sentiment of the US federal government seemed constructive. This means that the executive order could serve to broaden the adoption of virtual currencies within the US financial system.
Treasury Secretary Janet Yellen supported this idea in a statement stating that legislation will help consumers and businesses.
“President Biden’s landmark executive order calls for a coordinated, global approach to digital asset policy”Yellen said. “This approach will support responsible innovation that could result in substantial benefits to the nation, consumers and businesses.”
The Minnesota congressman, Tom Emmer, offered an insightful breakdown of the areas the executive order glosses over, warning his 48,000 Twitter followers that they have no reason to expect the US government to prioritize open, permissionless or private technology policies..
1) Decentralization is the Point: The EO doesn’t mention decentralization once. The disintermediation of our economy will enable all Americans, regardless of circumstance, to decide their futures, not a bank or Big Tech or the government.
— Tom Emmer (@RepTomEmmer) March 10, 2022
1) Decentralization is the point: The EO does not mention decentralization even once. The disintermediation of our economy will allow all Americans, regardless of circumstance, to decide their future, not a bank or Big Tech or the government.
However, he added that one of the most promising parts of the executive order is that it “does not ask the SEC to intervene.” SEC Chairman Gensler has spent the past year intimidating cryptocurrency innovators and entrepreneurs with his unproductive regulation through public statements and enforcement actions.. His input is not critical.”
Gensler thought about the news anyway, deciding to post his support for Biden’s regulation efforts on Twitter.
Today, @POTUS signed an Executive Order on crypto-assets. I look forward to collaborating with colleagues across the government to achieve important public policy goals: protecting investors & consumers, guarding against illicit activity, & helping ensure financial stability.
— Gary Gensler (@GaryGensler) March 9, 2022
Today, @POTUS has signed an Executive Order on crypto assets. I look forward to collaborating with colleagues across government to achieve important public policy goals: protecting investors and consumers, guarding against illicit activity, and helping ensure financial stability.
Gensler’s tweet was met with criticism from some members of the crypto community on Twitter.given his often-voiced skepticism by the digital asset industry.
Ryan Selkis, the CEO of Messario Crypto, put Gensler squarely in the crosshairs, stating that Gensler’s goals have nothing to do with protecting investors..
With any luck, you’ll be completely boxed out of meaningful input as your personal goals have nothing to do with investor protection, market stability or blocking illicit activity.
Fitting you say nothing about capital formation here.
Keep promoting CCP companies over crypto!
— Ryan Selkis (@twobitidiot) March 9, 2022
With any luck, you will be completely excluded from making a significant contribution, as your personal goals have nothing to do with protecting investors, maintaining market stability, or blocking illicit activity.
It is appropriate that you say nothing about capital formation here.
It continues to promote CCP companies over cryptocurrencies.
The broader stock market rose on Wednesday with the S&P 500 posting a 2.5% gain despite continued geopolitical tension in Eastern Europe..
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