President Joe Biden’s Crypto Executive Order Gets Nod from Treasury Secretary Janet Yellen

09. Mar 2022 Posted by Akolkar B on News

U.S. President Joe Biden will be signing the much-awaited crypto executive order today, March 9. However, details about the comments from U.S. Treasury Secretary Janet Yellen leaked a day before.

Janet Yellen seems to have given a thumbs up to the executive order maintaining that it strikes a balance between innovation and managing risks. In her comments, the U.S. Treasury Secretary notes: "President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy.  This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses.  It will also address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy”.

Yellen also mentions the different lawmaking agencies with which the Treasury will work in close consultation. She further added that “Treasury will work to promote a fairer, more inclusive, and more efficient financial system, while building on our ongoing work to counter illicit finance, and prevent risks to financial stability and national security.”

The crypto executive order is the first time that the U.S. government shall be addressing digital assets at a federal level. The goal here is to create a strong framework for the use of digital assets and reduce the risks of illicit transactions.

The executive order will also support the development of the central bank digital currency (CBDC) aka the Digital Dollar. The central bank has been already working on having the infrastructure of Digital Dollar and how it can potentially benefit the American financial system.

As Yellen’s comments strike a positive tone with the executive order, the crypto market reacted positively today. After a week of strong volatility, the entire crypto market is up 7% today with Bitcoin shooting past $41,500 levels.

The altcoin space has followed as well with today’s market rally. All of the top ten cryptocurrencies post gains anywhere between 5-10%. Ethereum is up 7% trading at $2735 levels.

However, the biggest gainer has been Terra’s native crypto LUNA. The LUNA price has shot up 24% in the last 24 hours and has surged past $100. The LUNA crypto has been strongly resilient against the recent market fall.