The Biden administration’s long-awaited executive order for government agencies to take a closer look at issues surrounding the crypto market is being celebrated by industry participants even though it lacks a direction. clear on possible regulations.
“The executive order is quite vague. They still talk a lot about the need to keep restrictions on this asset class,” said Matt Maley, chief market strategist at Miller Tabak + Co., in a statement. “However, this is still the kind of signal that the Washington, DC establishment, is becoming more comfortable with crypto and that is bullish.”
Bitcoin rallied as much as 11% on Wednesday. Ether, the second largest token, gained more than 8%, while so-called altcoins also rose. The advance is in line with other risk assets, like stocks, which have been under pressure amid a downturn from Russia’s invasion of Ukraine.
Antoni Trenchev, co-founder of crypto platform Nexo, warned investors to “expect further volatility as we seek clarity from the regulatory haze and ripple effects from Ukraine.” continues to be felt all over the world.”
However, others are claiming the executive order as a victory for the field. Craig Salm, Grayscale’s Chief Legal Officer, called the directive “extremely positive” in an interview.
Here’s what other market participants are saying:
Like many of you, I think the Biden admin’s EO will acknowledge cryptocurrencies, but don’t detail the next steps for regulation. However, I am surprised and inspired by the fact that EO acknowledges the *need* for the development and alignment of the government’s approach to cryptocurrencies.
– Brad Garlinghouse (@bgarlinghouse) March 9, 2022
Jeremy Allaire, Co-Founder, CEO and President of Circle:
“The Biden Administration’s executive order on digital assets represents a pivotal moment for crypto and the Web3, like the one when governments in the ’90s recognized the commercial power of the internet. . The US government now takes a government-wide approach to supporting an open, internet-native economic infrastructure, unleashed by new Web3 technologies, bringing the country one step closer to ensuring a The US dollar remains the currency of the internet and of the United States. remains the home of innovation and disciplined competition. “
Trenchev of the Nexo cryptocurrency platform:
“While President Biden’s executive order leaves us unclear on the regulatory path, it is clear that his administration believes that moving away from crypto will be as bad for the nation as it is to miss out. infrastructure of the Internet in the early 1990s. The United States did not want to be left behind as other countries were looking to monitor the cryptocurrency industry.”
Barbara Matthews, Founder and CEO of BCMStrategy Inc.:
“As we predicted last week, the significant changes in focus regarding cryptocurrency mining require US authorities to take a nuanced approach to cryptocurrency regulation. death. Increased direct competition with Russia for mining and the apparent incentives to stave off the possibility of evading financial sanctions are being balanced against the growing US mining presence and deep commitment identity of US banks and the Federal Reserve for stablecoin initiatives. Globally, significant efforts are being made by central banks to compete with cryptocurrencies through government-issued digital currencies that are undervalued. “
Leah Wald, CEO at Valkyrie Funds, an asset manager focused on digital assets:
“This executive order has largely come as expected, involving agencies tasked with making rules and setting guidelines around our industry. We welcome this development and fully believe that regulatory clarity will lead to significant growth of adoption across blockchain projects and digital assets. What is even more encouraging is that the government is now actively looking to establish a digital dollar, which is absolutely necessary for our economy to be globally competitive with other countries. like China already has CBDC. The development of a digital dollar can also be very helpful in helping our government learn more about our industry and we encourage them to engage with the leaders in the space to receive guidance and advice on how to bring the project to market. ”
Hany Rashwan, CEO and Co-Founder of 21Shares, a crypto ETP provider:
“At 21Shares, we have always believed that the best way to introduce and expose investors to cryptocurrencies is through a secure and regulated approach. Today’s executive order is an important step forward for U.S. investors looking to capitalize on the most lucrative asset class of the past decade and, we believe, for the next decade. ”
Meltem Demirors, chief strategy officer at crypto fund provider CoinShares:
“It’s the same song and dance in Washington DC, that is, let’s study it. The executive order is full of statements that are top statements that are factually questionable and offer certain implications about how cryptocurrencies are being used, in terms of purported environmental impacts. So I think it’s very clear what the authority bias is, but we’ll see what comes out of that,” she said. “At the end of the day, the order can only refer to the parts of the governing body that are run by the president. The SEC and CFTC are independent agencies – and are therefore only mentioned a few times in that order as entities to be consulted – but these two regulators will likely be the most important in determining regulations. shaping the future of the cryptocurrency market. ”
FTX’s Sam Bankman-Fried:
“We applaud the Biden administration for recognizing the growing importance of the digital asset space and believe that today’s executive order is an important step forward in building a regulated environment. closely in the United States, innovation will always go hand in hand with safeguards and safety measures.”
(Updated with additional comments.)
–With support from Sonali Basak.
