President Joe Biden signed an executive order Wednesday calling on the government to examine the risks and benefits of cryptocurrencies.
Cryptocurrency prices spiked on the news, with bitcoin, the largest crypto by market capitalization, rising by as much as 9% Wednesday before reversing course Thursday.
The crypto market got wind of the executive order ahead of Wednesday’s announcement after the Treasury Department accidentally put out a since-deleted statement calling it “historic” and releasing some of the details ahead of time.
Here’s why cryptocurrencies are rallying and what the executive order may mean for the future of digital assets.
The U.S. government is taking crypto seriously
The executive order will look into consumer protection, financial stability, illicit activity, U.S. competitiveness, financial inclusion, and responsible innovation in the crypto space, according to Wednesday’s White House press release.
Cryptocurrency is a decentralized asset, meaning there’s no single bank or authority that oversees it, unlike the U.S. dollar which is managed by the Federal Reserve. News of potential federal oversight is being welcomed by many leaders in the crypto space.
“The crypto industry has been on the edge of its seat for this executive order, and the reaction has been overwhelmingly positive” says Kate Rooney, CNBC’s technology reporter who covers cryptocurrency. “CEOs and industry leaders are interpreting the executive order as a sign that not only does the U.S….
