Crypto-related stocks especially in the mining firms like Riot Blockchain and Marathon Digital Holdings gained 11.52%, and 14.9% respectively.
Crypto-related stocks jumped as much as two-digit percent on Wednesday following Biden’s executive order on crypto assets. Additionally, the crypto market experienced a bump during the day as the fears of crackdown eased. In addition to Biden’s executive order on crypto assets, Dubai through its ruler Sheikh Mohamed released a comprehensive draft on virtual assets law and also approved a new authority oversight.
Previously, the European Union had released a report draft of crypto-asset regulations on terrorism and money laundering issues.
Following the three announcements, investors jumped in to buy crypto-related stocks. For instance, Coinbase Global Inc (NASDAQ: COIN) gained as much as 10.48 percent during the day to close Wednesday trading at $178.97. However, according to market data provided by TradingView and MarketWatch, COIN had lost approximately 3.75 percent during today’s premarket trading session.
Other notable crypto-related stocks include the mining firms like Riot Blockchain Inc (NASDAQ: RIOT), and Marathon Digital Holdings Inc (NASDAQ: MARA) which gained 11.52 percent, and 14.9 percent respectively. However, they both had lost approximately 5 percent during today’s pre-market.
In general, the crypto industry made a tremendous milestone in its adoption journey with countries’ preparation. Crypto adoption at the country level began with El Salvador signing into law Bitcoin as legal tender alongside the United States dollar.
As such, volatility is expected to remain high in the crypto market since the business has been legalized. More institutional investors are now likely to convert more of their cash reserves to crypto assets.
Crypto-related Stocks amid Increased Regulations
Apart from a few virtual assets like LUNA and AVAX, the crypto market has been in a bear market for the past few months. Since hitting a new all-time high around November last year with a market cap of around $3 trillion, liquidation has been the order of the day.
Worth noting, the United States government through the Biden administration has set out a clear path to protect investors and businesses. According to the Biden crypto executive order, CBDC is on the center stage of virtual assets. Notably, the United States is researching the best form of digital currency more so its CBDC.
“My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States’ CBDC. These efforts should include assessments of possible benefits and risks for consumers, investors, and businesses; financial stability and systemic risk; payment systems; national security; the ability to exercise human rights; financial inclusion and equity; and the actions required to launch a United States CBDC if doing so is deemed to be in the national interest,” the Biden crypto executive order reads.
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