That is a good start to the day, the crypto markets are in the green. Bitcoin is up 8.25% in the last 24 hours and Ethereum is also showing its bright side with 7.6% growth. The increases appear to coincide with the accidental leak of the new crypto law on an official US government website.
The article was removed almost immediately, but luckily there are screenshots. Before seeing the new law, first the price of bitcoin and the date. Yesterday we wrote that Wednesday March 9 (today) could be an important day for bitcoin.
filtered too early
That article was about this new legislation. Due to the time difference with the US, the accidental exchange of this new law occurred on Tuesday (in the US).
Right now it’s the middle of the night in the US and many don’t wake up until after lunchtime. At some point during our afternoon or evening, the new legislation will be officially shared.
But at least the crypto markets have responded positively to the message that was briefly shared.
the beginning is positive
The statement accidentally shared was written on behalf of Janet Yellen, the United States Secretary of the Treasury. She states that the executive order “could bring substantial benefits to the country, consumers and businesses.” So that starts out very positive.
“It will also address the risks associated with illegal financing, protect consumers and investors, and prevent threats to the financial system and the broader economy.”
That may seem like threatening language, but it is nothing more than what every politician in the world has ever said about cryptocurrencies. At the same time, it is quite interpretable, allowing legislators to implement it in a variety of ways.
Looking beyond national borders
Yellen also outlined the next step the Treasury Department will take in understanding cryptocurrencies and how to regulate them within the rules of the executive order.
To help the Treasury Department in its efforts, other government agencies will work together to prepare a report “on the future of money and payment systems.” This not only looks within national borders, but also includes large international players to “promote strong standards and a level playing field.”
Collaborate with other government agencies
The Treasury Department will also convene the Financial Stability Oversight Board to determine if “appropriate protections” exist. It’s not entirely clear what Yellen means by this, but she’ll probably come back to it this afternoon or tonight.
In any event, these “appropriate protections” are in addition to the ongoing work Yellen said her division has already done with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency regarding stablecoin regulation.
Influence in the Netherlands?
If you think, what does this have to do with us? This is a regulation from a distant country, the United States is not our boss. You’re right about the latter, but the post suggests the executive order will have global implications as “we will work with our international partners to promote strong standards and a level playing field.”
Yellen is most likely referring to Canada and the EU.
words not deeds
Yellen also said that her ministry will continue to work together to protect consumers and will continue to speak with experts.
“Treasury will work to promote a fairer, more inclusive and efficient financial system, while building on our ongoing work to curb illicit financing and prevent risks to financial stability and national security.”
At the moment, it is not clear what will happen in concrete terms, and you mainly read what they are planning in general. If you have nothing to do, you can read Finance Minister Janet Yellen’s message here.