After the U.S. Treasury released details of an executive order from President Joe Biden that appeared to take a supportive stance toward digital assets, cryptocurrencies spiked.
The virtual currency was nearly 9% higher as of 2:14 a.m. According to data from CoinDesk. ether was also higher.
The rally started at 6 p.m. The Treasury published details and a statement online in response to an upcoming executive order from the U.S. president. The Treasury Secretary's statement was not published.
According to news outlets, a Biden order on cryptocurrencies is imminent.
The Treasury statement said that the executive order calls for a comprehensive approach to digital asset policy and that government agencies would coordinate their work.
The Treasury statement that appeared supportive of cryptocurrencies was enough to boost optimism, even though traders are still waiting for the final executive order.
Yuya Hasegawa, market analyst at Bitbank, told CNBC that the leaked Treasury statement has been welcomed by the market as it seems to focus on development of the industry, rather than imposing unrealistic regulations.
The executive order was called a constructive approach to thoughtful regulation by the co-founder of the exchange.
China has looked to wipe out cryptocurrencies trading, but other countries such as El Salvador have embraced it. The U.S. does not have a high-level framework for developing and regulating cryptocurrencies, sparking fears that it could be left behind.
The U.S. should create a new regulatory body for the digital asset market, according to a report last year.
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