Bitcoin (BTC) took bids on Wednesday following US President Joe Biden’s signature of an executive order that requires government agencies to analyze the risks and benefits of creating a central bank digital dollar and other crypto-related matters.
According to Reuters, in Biden’s order, the Treasury Department, the Commerce Department, and other key agencies must prepare reports on ‘the future of money’ and the impact of cryptocurrencies .
“With the recent sanctions regime in place as a result of the war in Ukraine, it is doubly imperative that we have a regulatory framework in place for digital assets that counters illicit finance, and prevent risks to financial stability and national security,” Michael Pierson, the Managing Partner at law firm FisherBroyles, said about the executive order.
To deal with the growing threat of ransomware and other cybercrimes, the White House said it was considering broad-ranging oversight of the cryptocurrency market. Thus, virtual currencies could be adopted by the US financial system as a result of this executive order.
“Under the executive order, Treasury will partner with interagency colleagues to produce a report on the future of money and payment systems,” the US Treasury Secretary, Janet Yellen said. “We’ll also convene the Financial Stability Oversight Council to evaluate the potential financial stability risks of digital assets and assess whether appropriate safeguards are in place. And, because the questions raised by digital assets often have important cross-border dimensions, we’ll work with our international partners to promote robust standards and a level playing field,” she added.
Bitcoin Price Action
As of press time, Bitcoin exchanges hands at $42,046, trading up 8.50% on the day and consolidating gains above the 200-hours simple moving average.
Now, BTC faces the resistance of around the $42,400 threshold, where sellers are active at that point. On the downside, the nearest support levels lie at $40,800 and $40,000.
