Cryptocurrency-related stock prices jumped as the broader market reacted positively to a long-awaited order from US President Joe Biden. This will require US federal agencies to create a regulatory framework for digital assets, as well as study the future of the digital dollar.

Coinbase shares rose 10.5% at the close of trading, while MicroStrategy, Bitcoin evangelist Michael Saylor, rose 6.4%, according to TradingView.

Blockchain-linked exchange-traded funds (ETFs) also showed renewed market confidence in the cryptocurrency, with the ProShares Bitcoin Strategy ETF gaining 10% and the Valkyrie Bitcoin Strategy ETF closing 10.3%.

Cryptocurrency miners saw the biggest growth: Shares of Riot Blockchain Inc. Shares of Marathon Digital Holdings Inc rose 11.2% – up 13.5%. Jefferies analyst Jonathan Peterson has restored the purchase assessment of Marathon Digital Holdings Inc. In a note to clients, he noted that cryptocurrency miners are likely to benefit now that the US government “officially recognizes, interacts and explicitly supports” the digital asset industry. .

While 10 percent swings are common in cryptocurrencies, these are extraordinarily volatile characteristics in traditional markets. Despite the rally in the last day, Coinbase’s price is still about 48% below its direct listing price last April. Riot Blockchain is in even worse shape, currently down 76% from its February 2021 high.

Bitcoin (BTC) itself jumped 9% after details of the leaked order before returning to its current 5% gain.

Aside from the immediate positive price action, most investors considered the executive order, if not net positive for the crypto industry, to be at least less bad than they feared. President Biden described the rise of digital assets as “an opportunity to advance US leadership on the global financial system and technological frontiers.”

The order did not explicitly mention the expected regulatory action, but the general view of the US federal government appears to be constructive. This means that executive orders are likely to increase the use of virtual currencies in the US financial system.

It was also supported by Treasury Secretary Janet Yellen, who said in a statement that the legislation would help consumers and businesses.

“President Biden’s landmark executive order calls for a coordinated and comprehensive approach to digital asset policy,” Yellen said. “This approach will support responsible innovation that can bring significant benefits to the nation, consumers and businesses.”

Minnesota Congressman Tom Emyr gave a detailed overview of the areas where the executive order had disappeared, warning his 48,000 Twitter followers that they had no reason to expect the US government to prioritize open, unlicensed, or private technology policies. .

On the topic: Cryptocurrency Can Bypass President Biden’s ‘Devastating’ Sanctions Against Russian Banks and Elites: Report

However, he added that one of the most promising parts of the matter is that it “is not asking the SEC to intervene. SEC leader Gensler has spent the past year bullying cryptocurrency innovators and entrepreneurs through his unproductive regulation through public statements and executive actions. Not decisive.”

Gensler commented on the news anyway and decided to tweet his support for Biden’s organizational efforts.

Gensler’s tweet drew criticism from someone in the crypto-tweet community, given his often-expressed skepticism about the digital asset industry.

Ryan Selkis, CEO of Misario Crypto, put Gensler in the crosshairs, saying Gensler’s goals had nothing to do with protecting investors.

Overall, the stock market was higher on Wednesday, with the S&P 500 index up 2.5% despite ongoing geopolitical tensions in Eastern Europe.

Source: CoinTelegraph

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