U.S. President Joe Biden has signed an executive order on cryptocurrencies. He directed federal agencies to coordinate the crypto markets and the digital asset sector. Despite the news, the crypto market gained, and major cryptocurrencies went up during the trade on Wednesday.
In his order, Biden asked the agencies to draft cryptocurrency regulations. On Wednesday, the President signed this first-of-its-kind executive order.
Crypto Market Performance
The cryptocurrencies surged after the executive order was signed, against what was expected. Bitcoin (BTC) gained 8.60% and traded at $42,093.70, covering its early losses. Earlier in the day, the crypto was trading below $40k but later crossed the $40,000 margin.
Ethereum (ETH) trades at $2,735.81, rising 6.02% in trades today, while Terra (LUNA) rose a whopping 22% and trades at $98.66. Cardano (ADA), Solana (SOL), and Avalanche (AVAX) also rose massively to cover their previous losses, which the crypto market had suffered after Russia launched a full-scale invasion of Ukraine.
The executive order
The executive order is the first to focus on the digital asset market. It also directs the federal agencies to take part and communicate effectively about their work in the new growing crypto and digital asset sector. However, the administration hasn’t clarified the responsibility that the agencies should adopt. The new order also did not bring any new regulations for the crypto companies to follow.
The order was reported to be in progress for the first time in October 2021, when the U.S. wanted to put some regulations on the unregulated crypto market. The new executive order also defines six critical priorities for the administration. They are:
- Protecting Global financial stability
- Preventing illicit uses
- Promoting “responsible innovation.”
- Financial inclusion, and
- U.S. leadership
According to a report, around 40 million Americans, making up 16% of the total population of the United States, invest in digital assets and cryptocurrencies. America is also under the impression that Russia could use crypto as a means to escape the international sanctions. Russia could also use the Crypto market to trade currencies in the global market.