Bitcoin jumps after apparent Yellen statement quells U.S. clampdown fears

© Reuters. FILE PHOTO: A representation of cryptocurrency Bitcoin is seen in this illustration taken August 6, 2021. REUTERS/Dado Ruvic/Illustration By Kevin Buckland and Tom Westbrook TOKYO (Reuters) - led a rally in cryptocurrencies on Wednesday after what appeared to be a prematurely published U.S. Treasury statement allayed market worries about a sudden tightening of U.S. rules around digital assets. In a statement that briefly appeared on the Treasury website before it was taken down, Treasury Secretary Janet Yellen said a still-pending executive order on virtual currencies from President Joe Biden "calls for a coordinated and comprehensive approach to digital asset policy (that) will support responsible innovation." CoinDesk carried an archived version of the release. The U.S. Treasury Department did not immediately respond to Reuters' emailed request for comment about the statement outside of business hours. Biden is expected to sign a long-awaited executive order this week directing the Justice Department, Treasury and other agencies to study the legal and economic ramifications of creating a U.S. central bank digital currency, a source familiar with the matter said on Monday. The White House last year said it was considering a wide-ranging oversight of the cryptocurrency market - including an executive order - to deal with the growing threat of ransomware and other cyber crime. The statement "seems to indicate that (U.S. authorities) won't be taking any swift, major regulatory actions as yet, and will likely be taking a more coordinated and objective approach over time," leading cryptocurrencies to rally, said Matthew Dibb, COO of Singapore crypto platform Stack Funds. Bitcoin climbed 7.2% to $41,515, on track for its biggest gain since Feb. 28, while smaller peer ether added 5.3% to $2,715, also set for its best day this month. Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Bitcoin jumps after apparent Yellen statement quells U.S. clampdown fears
Bitcoin jumps after apparent Yellen statement quells U.S. clampdown fears© Reuters. FILE PHOTO: A representation of cryptocurrency Bitcoin is seen in this illustration taken August 6, 2021. REUTERS/Dado Ruvic/Illustration

By Kevin Buckland and Tom Westbrook

TOKYO (Reuters) - led a rally in cryptocurrencies on Wednesday after what appeared to be a prematurely published U.S. Treasury statement allayed market worries about a sudden tightening of U.S. rules around digital assets.

In a statement that briefly appeared on the Treasury website before it was taken down, Treasury Secretary Janet Yellen said a still-pending executive order on virtual currencies from President Joe Biden "calls for a coordinated and comprehensive approach to digital asset policy (that) will support responsible innovation." CoinDesk carried an archived version of the release.

The U.S. Treasury Department did not immediately respond to Reuters' emailed request for comment about the statement outside of business hours.

Biden is expected to sign a long-awaited executive order this week directing the Justice Department, Treasury and other agencies to study the legal and economic ramifications of creating a U.S. central bank digital currency, a source familiar with the matter said on Monday.

The White House last year said it was considering a wide-ranging oversight of the cryptocurrency market - including an executive order - to deal with the growing threat of ransomware and other cyber crime.

The statement "seems to indicate that (U.S. authorities) won't be taking any swift, major regulatory actions as yet, and will likely be taking a more coordinated and objective approach over time," leading cryptocurrencies to rally, said Matthew Dibb, COO of Singapore crypto platform Stack Funds.

Bitcoin climbed 7.2% to $41,515, on track for its biggest gain since Feb. 28, while smaller peer ether added 5.3% to $2,715, also set for its best day this month.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.