Bitcoin jumps ahead of Biden’s order on digital assets

Bitcoin soared on Wednesday ahead of US President Joe Biden’s signing of an executive order on digital assets, which is expected to boost the validity of virtual currencies in the US financial system.

After what looked to be a prematurely issued US Treasury statement allayed market concerns about a rapid tightening of US restrictions governing digital assets, digital currencies soared overnight.

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.”

The U.S. Treasury Department said the statement was posted early due to a web error and was reposted Wednesday morning.

“The market has clearly been heartened by talk of supporting responsible innovation and a constructive approach to regulating the evolving digital token economy,” the Bitfinex Trading team said in a note.

On Wednesday, Biden is set to sign a long-awaited executive order asking the Justice Department, Treasury, and other agencies to explore the legal and economic implications of creating a digital currency issued by the US central bank.