Bitcoin shot up as much as 10% this morning, back to $42,000 with help from Janet Yellen. The US Treasury Secretary unveiled a new White House executive order to regulate the cryptocurrency market, in a speech released on Wednesday.
Trouble is, the memo shouldn’t have been released until today, so the Treasury Secretary quickly removed the speech from the website. The time frame was advanced by Bloomberg and, despite the setback, there was no time to stop the surge in the cryptocurrency market, which reacted upward to news from the US administration.
Crypto market ‘players’ have championed the need for regulation that transforms the cryptocurrency industry from a no man’s land into a segment of platforms and investors who can clearly see what action they can take and in which direction. In his speech, which will be delivered this afternoon before Congress, Yellen will emphasize “that a presidential decree on the regulation of cryptocurrencies would support responsible innovation”. “Under the decree, the Treasury, in partnership with colleagues from other agencies, will be able to prepare a report on payment systems,” Yellen added. He added that “the decree will address the risks associated with illicit practices, protecting consumers and investors and preventing threats to the financial system and the economy in general”.
In light of those words, bitcoin climbed 10% this morning to $42,427, hitting a new high last week, but after falling to $42,108.23. Ethereum, meanwhile, continues to rise, rising 8.4% to $2,745.53, according to data from Coin Market Cap.
Despite these gains, those most favored by Yellen’s remarks are the so-called “private cryptocurrencies” or “crime coins” — in a more derogatory tone — so well-known because of their high degree of anonymity, which often leads to speculation about its widespread use on the dark web for illicit purposes. Monero jumped 21% and Zcash jumped 17%, according to data from CoinGecko.
Along with comments from the Treasury Secretary, these gains were also boosted by speculation that these currencies could function as means of payment used by Russia. “The recent growth in the price of private currencies is mainly driven by traders speculating that we may be seeing capital flight,” explained Ben Caselin, head of “research” and strategy at the cryptocurrency exchange. AAX, quoted by Bloomberg.
US behind Europe in regulation
Unlike the European Union, which is already working on the final points of regulation on the crypto-asset market (in English acronym MiCA), which could be published next year or in 2024, in the USA, so far , a single report has been published a preliminary “language” that launched the preparatory work for cryptocurrency legislation.
However, from this decree of Joe Biden, everything can change. According to a US government source in statements to Bloomberg, the US agencies in charge of this issue will have 60 to 180 days to complete the reports, after which the White House will step in to comply with the recommendations and begin presenting proposals.