Bitcoin Up, as the White House Announces Plan to Regulate Cryptos

Executive Order on Digital Assets

The White House just announced that US President Biden will be signing an Executive Order on ensuring responsible innovation in digital assets, including cryptocurrencies.

The regulation aims to address the risks and harness the potential benefits of digital assets and their underlying technology, laying out a six key priorities: consumer and investor protection, financial stability, illicit finance, U.S. leadership in the global financial system and economic competitiveness, financial inclusion, and responsible innovation.

The announcement was largely expected, as the US Department of Treasury had jumped the gun yesterday, publishing a statement by Secretary Yellen, which was dated March 9. The statement was taken down and republished again today.

Ms Yellen noted that the President's plan "will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses". ^[2]

Last week, the United States had sought to ensure that cryptocurrencies will not be used by Russia for evading recent sanctions imposed by Western countries, in retaliation for the invasion of Ukraine.

BTC/USD Reaction

The regulation announced today seems to have been well received by the industry, while BTC/USD is having a very good day, gaining around 9% at the time of writing. This gives it the chance to take another crack at the key 44,700-46,723.

This includes the 200Days EMA, last month's highs and the 38.2% Fibonacci of the drop from November's record highs to this year's lows. Daily closes above theis level can open the door to a further advance towards 50,000-50,981.

We are cautious at this stage though, since the 200Days EMA has contained its ascending aspirations in multiple occasions recently. This may create renewed selling pressure and lead to fresh March lows (37, 147), but a catalyst will be needed to threatens those of the year (32,939).