Welcome back to the Tribe! In this post we dive further into the recently announced Executive Order For Crypto!
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Executive Order For Crypto
A recently released facts sheet has provided details on President Joe Biden’s Executive Order regarding digital assets and the cryptocurrency industry. The policy is said to trigger full-scope crypto regulatory infrastructure within the U.S. and re-enforce America’s dominance as a global leader in finance.
In addition, the facts sheet comes just hours after U.S. Treasury Secretary Janet Yellen hinted that Biden’s order will side with digital innovation
Following leaked information from Biden’s EO and Yellen’s comments, crypto market prices surged and holders experienced broad-based gains.
Green Day for Crypto As Biden Signs Executive Order
Majority of the crypto market turned green as anticipation grew for President Joe Biden’s Executive Order on Cryptocurrencies. The total crypto market cap grew some 6% as the world’s leading digital currency by market cap Bitcoin (BTC) went on the uptrend once again after breaking back into the $40k region, per data from Tradingview charts.
However, altcoins clearly outperformed BTC with tokens such as Luna boasting double-digit gains. Data from on-chain aggregator CoinMarketCap also revealed that privacy-focused digital currencies like Monero and Zcash led the crypto charge as both tokens gained over 20%.
The green markets signaled massive liquidation calls across a plethora of exchanges and cryptos. According to data from Coinglass, some $95 million worth of short were obliterated from the market following positive crypto-related comments from U.S. Treasury Secretary Janet Yellen. Short positions are taken when traders bet against a rise in token prices.
U.S. Agencies to Develop Standardized Crypto Regulatory Framework
Yellen’s comments from Tuesday suggested that Biden’s administration could incentivize responsible innovation while working to mitigate the risks associated with the crypto industry.
Although Biden’s executive order on digital assets which was published on Wednesday (March 9, 2022) does not directly implement new laws and policies, the order directs regulatory bodies to develop and submit legislative recommendations.
Also, the fact sheet reveals that Biden’s national policy on crypto will prioritize six key areas in consumer protection, financial stability, illicit finance, promoting U.S. leadership in the global financial system, financial inclusion, and responsible innovation. An excerpt from the order reads:
“The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier, but also has substantial implications for consumer protection, financial stability, national security, and climate risk.”
Furthermore, the executive order calls on relevant U.S. government agencies like the Department of Commerce, the Treasury, and the Securities and Exchange Commission (SEC) to liaise with America’s international partners and allies in align with global regulatory policies.
Finally, the news marks the first ever whole-of-government effort geared towards addressing the emergence of blockchain technology and cryptocurrencies. As of the time of writing this report, no timeline has been revealed for proposed regulations.
However, with Biden’s executive order in place, crypto proponents expect that digital assets could remain a hot topic within congress in the coming months.
Crypto Services In Singapore
Singaporean subsidiary of Swiss crypto bank receives regulatory approval to offer more virtual asset services within the Southeast Asian country. The green light has been given in principle and is yet to take full effect.
Executive Order For Crypto Post
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The first-ever Bitcoin x Gold exchange-traded product was launched by a collaboration between ETP issuer 21 Shares and ByteTree, an asset management heavyweight. Dubbed BOLD, the fund will debut on the Swiss exchange SIX. BOLD is split with an 18.5% BTC and an 81.5% Gold sharing formula. An algorithm that leverages 360-day historical volatility data will rebalance the fund on a monthly basis.
Bitcoin becomes an acceptable means of payment for the first time in the continent of Africa. Legislators from the Central African Republic recently approved the bill to legalize crypto in the country. The country joins El Salvador in a shortlist of countries with Bitcoin as legal tender.
It’s possible that the CAR could draw scrutiny from international financial bodies and sovereign governments from adopting Bitcoin on a national level. Organizations like the European Union and IMF have been critical regarding widespread crypto adoption in recent times.
