United States president Joe Biden lately signed the much-awaited executive order on cryptocurrency and this led to a good surge in the value of crypto markets temporarily. The prices moved back with inflation news across Europe. However, market analysts argue a wider acceptance of crypto coins may impact the value in a positive direction.
The prices of cryptocurrencies started rising prior to Biden's authorizing signature. The accidental response release of US Treasury Secretary Jenet Yellen to the president's declaration a day before moved the prices upward.
Her office removed the statement immediately but failed to make it before it hit the crypto news avenue. Bitcoin surged to more than $38,000 with the news and reached as high as $41,000. The price jumped to $42,500 with the approval signing.
However, it was unfortunate for the cryptocurrency enthusiasts and the growing momentum dispersed with the rising inflation rates in Europe hit the headlines.
Besides the up and down of crypto values, it is a warm welcome that the US has openly embraced the digital financial segment. The Treasury Department now will be working on the regulatory aspect of cryptocurrency. It is simultaneously learned the government will be finding the possibilities of its own digital dollar.
ARK26 hedge fund's executive director Mikkel Morch said the leaked release from the table to Yellen reveals the government may set a friendly tone for the crypto regulation. The investors now will be more hostile. The $40K price rise shows the confidence of investors that promising development is on the card.
It is now being hoped that the SEC may take note of the expectations of investors and another explosive leg could be witnessed soon in the crypto market.
Jackson Mueller from Securrency has raised some concerns over the executive order that the administration is duplicating the existing work of various agencies and this could lead to disparity with independent regulatory authorities.
Meanwhile, market analysts have called for an immediate regulatory framework and the digital USD should be usable across chains. ANB Investments CEO Jaime Baeza welcomed the signed order and said regulation is required for the development of the cryptocurrency segment.
The digitalasset is a different asset class and requires proper regulation. It does not fit the existing asset class like currencies, commodities and equities. This means the regulatory authority needs to paint a blank canvas.
The cryptocurrency market is just about a decade old and Bitcoin was the first crypto coin launched in 2009. Transactions are fast and anonymous based on blockchain technology.