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Bitcoin tops $41k after yellen's crypto statement inadvertently published early

Bitcoin (BTC) rallied early on Wednesday, pushing the broader crypto market higher after U.S. Treasury Secretary Janet Yellen's inadvertently published remarks revealed that President Joe Biden's impending crypto order would take a constructive approach in regulating the digital asset industry.

  • "A presidential executive order on cryptocurrencies would 'support responsible innovation' as it coordinates U.S. policy across agencies," Yellen said in a statement, which was scheduled for release on Wednesday but was published on late Tuesday.

  • "Under the executive order, Treasury will partner with interagency colleagues to produce a report on the future of money and payment systems," Yellen added.

  • Bitcoin picked up a bid and rose nearly 7% to $41,900 after CoinDesk reported Yellen's comments, soothing market nerves. Other prominent cryptocurrencies like ETH, SOL, LUNA followed suit, according to CoinDesk data.

  • "Based on remarks, crypto EO is positive and calls for coordinated and comprehensive approach to digital asset policy that will support responsible innovation," Gemini Trust's Cameron Winklevoss tweeted.

  • "I applaud this constructive approach to thoughtful crypto regulation and look forward to working together with the various stakeholders to ensure that the US remains a leader in crypto," Winklevoss added.

  • White House's long-awaited executive order directed at cryptocurrencies has recently attracted strong attention, thanks to speculation that wealthy Russians could be using bitcoin and dollar-pegged stablecoins to bypass economic sanctions levied by the West. As such, several analysts have been worried that the Biden administration would take a hard stance on the evolving crypto sector.

  • While Yellen's comments have revealed a balanced approach, concerns about crypto's use for illicit financing persist. "The executive order will address risks related to illicit finance, protecting consumers and investors, and preventing threats to the financial system and broader economy," Yellen's now-deleted statement said.

  • The statement, dated March 9, was posted on the Treasury Department’s website on Tuesday night and was taken down shortly after it was published.

Author

CoinDesk Analysis Team

CoinDesk is the media platform for the next generation of investors exploring how cryptocurrencies and digital assets are contributing to the evolution of the global financial system.

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