February 6, 2025

CryptoInfoNet

Cryptocurrency News

Was Trump’s Crypto Order Successful in Establishing a Bitcoin Strategic Reserve?

Did Trump's Crypto Order Deliver On His Promise Of A Bitcoin Strategic Reserve?

Key Takeaways

U.S. President Donald Trump recently signed an executive order aimed at asserting U.S. dominance in digital assets and financial technology. While fulfilling a campaign promise to establish a national bitcoin stockpile, the wording of the order has caused some uncertainty about its feasibility. The order includes promises of regulatory clarity, and some changes are already in progress. For example, the SEC has rolled back a controversial accounting rule that previously hindered traditional financial institutions from serving as custodians for bitcoin.

President Donald Trump this week signed an executive order to establish U.S. dominance in the digital asset market and position the country as a global center for crypto. However, there are questions about whether the order aligns with Trump’s stated goals.

One of Trump’s promises to the crypto industry was the formation of a “strategic national bitcoin stockpile.” While the industry is optimistic about the order providing legal protections for crypto users and ensuring regulatory clarity, some concerns have been raised about a potential deviation from the original plan to establish a national bitcoin stockpile.

Following the executive order, Bitcoin (BTCUSD) experienced a slight sell-off, but it later recovered and was trading close to $105,000 by late-Friday.

Confusion Around a ‘National Digital Asset Stockpile’

The executive order established a working group to provide regulatory clarity on various issues, including the “potential creation and maintenance of a national digital asset stockpile.”

The language used in the executive order has created confusion. Firstly, the order only explores the possibility of a “potential” stockpile. Secondly, the language does not specifically mention bitcoin but refers to a stockpile of “digital assets.”

The order also mentions the option of sourcing this stockpile from the government’s existing crypto holdings obtained from various enforcement actions, rather than trading cryptocurrencies as with the Strategic Petroleum Reserve.

According to Galaxy Digital Head of Research Alex Thorn, “‘Stockpile’ refers to holding existing assets without necessarily making new purchases.” Thorn’s data suggests that the stockpile would primarily consist of bitcoin rather than other digital assets.

Some individuals are concerned about the potential challenges involved in creating a national bitcoin stockpile.

Castle Island Ventures Partner Nic Carter believes that legislation will be necessary for a true strategic bitcoin reserve, and such legislation may not pass.

Despite the executive order, the likelihood of a U.S. bitcoin strategic reserve being established this year has decreased from 76% to 61% according to prediction market Polymarket.

Protections for Crypto Users and Regulatory Clarity

The executive order also includes measures to enhance protections for crypto users and provide regulatory clarity.

Coin Center Executive Director Peter Van Valkenburgh believes that the President’s EO focuses on establishing processes and teams to improve crypto policy.

The crypto industry has often voiced concerns about regulatory uncertainties and enforcement approaches by the U.S. SEC. Some of these concerns are now being addressed.

Following the executive order, the SEC revoked a controversial crypto accounting rule (SAB 121) that had previously hindered traditional banks from serving as bitcoin custodians.

U.S. Senator Cynthia Lummis praised the decision to repeal SAB 121, stating that the rule had negatively impacted U.S. innovation in digital assets.

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