Bitcoin (BTC) Price Soars to a New 5-Month High, Now Up Over 30% in October; Analyst Sees Biden's Crypto 'Crackdown' as a Positive Development

October 11, 2021 1:31 PM EDT
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Bitcoin (BTC) price has soared 5% today to trade around the $57,500 mark and hit a new 5-month high.

The world’s largest cryptocurrency is now trading over 30% higher in October as buyers eye a return to record highs near the $65,000 handle.

Bloomberg reported Friday that the White House administration is considering an executive order for federal agencies to have a deeper look at crypto and come up with recommendations.

For Cowen’s analyst Jaret Seiberg, the goal behind such an executive order would be to clarify the space, which is a positive development for Bitcoin and other digital assets.

“Regulation is coming. We already have the Financial Stability Oversight Council and the President's Working Group tasked with crypto coordination. An executive order could expand this universe to include the Justice Department and other entities beyond Treasury and financial regulators,” the analyst said in a client note.

“We believe the most negative policy outcome for crypto would be conflicting federal requirements given the various agencies with authority. While we can't rule that out, the executive order reduces the risk of that outcome. It is why we also believe the naming of a White House crypto czar also would be a positive. Beyond better coordination, we do not believe policy developments would be much different if the President issues an executive order. We already expect stable coin issuers either will have to be banks or money market mutual funds. And we expect the SEC will demand that crypto exchanges register as it views most tokens as securities. An executive order is not likely to impact these outcomes,” Seiberg added.

The analyst added that the executive order should impact the Fed’s debate on CBDC, but it could have an impact on the use of bitcoin for illegal payments and tax evasion.

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