After Bitcoin's brief rise, the U.S. Treasury Department deleted Yellen's statement on the executive order on cryptocurrencies

On the morning of March 9, U.S. Treasury Secretary Janet L. Yellen issued a statement on U.S. President Biden's executive order on crypto assets. Subsequently, the crypto market ushered in a short-term rise, with BTC breaking through $41,000 and ETH breaking through $2,700. Data shows that BTC's on-chain transaction volume has increased in the past 24 hours, up 50.2% month-on-month.

The statement pointed out that Biden's historic executive order requires a coordinated and comprehensive approach to digital asset policy. This approach will support responsible innovation, thereby bringing huge benefits to the country, consumers and businesses. It will also address the risks associated with illicit finance, protect consumers and investors, and prevent threats to the financial system and the broader economy.

According to the executive order, the U.S. Treasury Department will work with colleagues across departments to prepare a report on the future of money and payment systems, and will convene the Financial Stability Oversight Council to assess the potential financial stability risks of digital assets and evaluate whether there are appropriate safeguards. Moreover, because the issues raised by digital assets often have important cross-border dimensions, the United States will also work with international partners to promote sound standards and a fair competitive environment.

After the announcement, the crypto market saw a short-term rise. Some analysts believe that relatively loose regulatory measures have injected confidence into the market, and a coordinated and comprehensive approach to digital asset policies is more conducive to promoting the long-term development of the market.

However, after a short-term rise in the crypto market, the U.S. Treasury Department’s official website has deleted Yellen’s statement. The specific executive order has yet to be finalized. As of press time, the price of BTC remains at around $41,500, and the price of ETH remains at around $2,700.

It is worth mentioning that the United States' attention to the crypto market goes far beyond this. On March 9, the U.S. Deputy Secretary of State said that the United States is studying loopholes in cryptocurrency sanctions against Russia.

Additionally, a competing bill on the regulation of stablecoins and their reserves is likely to be introduced to the U.S. Congress this month. In February, Rep. Josh Gottheimer introduced an early draft of the bill, similarly aimed at regulating reserves. The draft proposed a definition of “qualified” that would apply to stablecoins issued by banks and other institutions. The purpose of the bill is related to the President’s Working Group on Financial Markets (PWG) and past Tether controversies. Among other things, the working group recommended that stablecoin issuers should be regulated by the Federal Deposit Insurance Corporation (FDIC), just as banks are currently regulated.

Separately, U.S. Senator Elizabeth Warren is drafting a new bill aimed at tracking transactions in private crypto wallets. According to NBC News, the new bill requires financial institutions to keep detailed records and submit reports to the U.S. Treasury so that regulators can more easily verify the identities of customers who transfer funds to private crypto wallets. However, so far, Elizabeth Warren's office has not disclosed the specific details of the proposal, and it is unclear whether the new bill overlaps with the FinCEN draft rule.