U.S.A. president Joe Biden signed an executive order this week meant to further regularize cryptocurrencies. Initial excitement over this looks to have been short-lived. After an initial spile in evaluation, Bitcoin and Ethereum, have slumped back closer to their original positions.
On Wednesday, President Joe Biden signed an executive directive requesting that the government further examine the benefits and risks of cryptocurrency.
This long-awaited directive has put the crypto industry on high alert. This is due to growing regulatory concerns surrounding the emerging digital asset markets.
Wednesday the news was made official when the order was signed. According to a White House factsheet, it calls for federal agencies to adopt a common approach to the regulation and oversight of digital assets.
The Biden administration has asked the U.S. Treasury to evaluate and make recommendations regarding crypto. It wants regulators “to ensure sufficient oversight and safeguard against any financial systemic risks posed by digital assets.”
Prices of Bitcoin and other cryptocurrencies fell Thursday after some of the excitement surrounding U.S. President Joe Biden’s executive order regarding digital assets waned.
Last week, Bitcoin fell more than 5%. Other cryptocurrencies, such as ETH or XRP, were also trading lower.
The U.S. government’s decision was praised by some prominent players in the cryptocurrency industry. Cameron Winklevoss, the co-founder of Gemini’s cryptocurrency exchange, called it a “watershed moment.”
Some analysts surmise that momentum for Bitcoin was simply not strong enough at the time that the order was passed. The conflict in Ukraine is thought to contribute to the recent pessimism that has affected all financial markets, including crypto markets.