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Published: Mar 09, 2022 6 min read

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Collage of Joe Biden with a Bitcoin, Litecoin, Ripple Coin and Ethereum coin in the background
Money; Getty Images

Regulation is coming for the cryptocurrency market. That's likely a good thing for crypto investors, experts say.

President Joe Biden signed an executive order Wednesday morning to establish the first-ever federal U.S. strategy on cryptocurrencies and any future U.S. central bank digital currency.

The executive order calls on regulators including the Treasury Department to assess the risks of digital currencies, develop policy recommendations and "ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets," according to a White House fact sheet.

In a statement from the White House, National Economic Council Director Brian Deese and National Security Advisor Jake Sullivan said, "Fundamentally, an American approach to digital assets is one that encourages innovation but mitigates the risks to consumers, investors, and businesses, broader financial stability, and the environment."

Crypto prices jumped on the news, with bitcoin climbing more than 9% from its 5 pm E.T. price Tuesday, according to data from CoinMarketCap. Bitcoin's price was around $42,000 per coin as of Wednesday morning. The price increase initially started Tuesday after the Treasury Department reportedly accidentally published a statement on the executive order, which hadn't yet been officially announced.

While some cryptocurrency advocates are anti-regulation due to concerns that it could hurt innovation, experts say regulation could actually be a positive thing for crypto adoption, safety and more.