Bitcoin surges following Yellen’s statement

Bitcoin and other cryptocurrencies surged after the US Treasury reportedly disclosed details of a presidential executive order from US President Joe Biden that seemed to be pro-digital assets.

According to CoinDesk data, Bitcoin was trading at $41,584.21 as of 2:17 a.m. ET, about 9% higher. Other cryptocurrencies, such as ether, also rose sharply.

After what looked to be a prematurely publicized U.S. Treasury statement allayed market concerns about a rapid tightening of US restrictions around digital assets, Bitcoin led a rally in cryptocurrencies on Wednesday.

The rally began shortly after 6 p.m. ET on Tuesday, when the Treasury shared details and a statement in reaction to the president's planned executive order on cryptocurrencies. Treasury Secretary Janet Yellen's comments was quickly declassified.

In the discarded statement, Yellen said there was a pending executive order on cryptocurrencies from President Biden which "calls for a coordinated and comprehensive approach to digital asset policy (that) will support responsible innovation." An online archive of the press release was available on CoinDesk.

“The leaked Treasury statement has been welcomed by the crypto market as it seems to focus on development of the industry, rather than on imposing unrealistic regulations,” Yuya Hasegawa, market analyst at Japanese cryptocurrency exchange Bitbank, told CNBC.

Earlier last week, Reuters as well as other news sites claimed that a Biden order on digital currencies was on the way.

The presidential order calls for a holistic approach to digital asset regulation, according to the now-deleted Treasury statement, and government departments would coordinate their efforts.

Traders are still waiting for the final executive order, but a brief Treasury statement that appeared to be pro-crypto was enough to raise confidence.

Although the Treasury has declined commenting on the matter, a source familiar with the situation said on Monday that Biden is anticipated to issue a long-awaited executive order this week ordering the Justice Department, Treasury, and other agencies to explore the legal and economic repercussions of launching a US central bank digital currency.

Last year, the White House indicated it was exploring a broad regulatory framework for the cryptocurrency industry, including an executive order, to combat the growing threat of cyberattacks and other forms of cybercrime.

Bitcoin rose 7.2 percent to $41,515, its highest level since February 28, while ether rose 5.3 percent to $2,715, matching its best day of the month.