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

Investopedia / Alice Morgan / Getty Images

Investopedia / Alice Morgan / Getty Appearances

Key Takeaways

  • U.S. President Donald Trump on Thursday signed an executive order to establish U.S. dominance in digital assets and monetary technology.
  • While partly delivering on a campaign promise to create a bitcoin stockpile, the phrasing of the executive order originates some confusion about whether its possible.
  • The executive order promises regulatory clarity and some of the those substitutes are already beginning to happen.
  • The SEC rolled back a contentious accounting rule that effectively prevented traditional pecuniary firms or banks from acting as custodians for bitcoin.

President Donald Trump this week signed an overseer order to establish U.S. dominance in the digital asset market and make the country the global center of crypto. But does that ask for deliver on what Trump said he’d accomplish?

One of Trump’s promises to the crypto industry was the establishment of a “strategic national bitcoin stockpile.” While the crypto diligence is generally excited about the order providing legal protections for crypto users and the promise of greater regulatory transparency, some are worried about a perceived pivot from the definite establishment of a national bitcoin stockpile.

Bitcoin (BTCUSD) marketed off slightly following the announcement Thursday, though it recovered and was trading close to $105,000 in late-Friday trading.

Confusion Throughout a ‘National Digital Asset Stockpile’

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

This phrasing creates some muddle. Firstly, the executive order simply discusses the exploration of a “potential” stockpile. Secondly, the language in the executive order is not unequivocal to bitcoin and instead refers to a stockpile of “digital assets.”

It also mentions the possibility of this stockpile being inferred from the government’s existing crypto holdings that it has accumulated from various enforcement actions instead of transacting cryptocurrencies like the government does for the Strategic Petroleum Reserve.

“‘Stockpile’ is jargon that means holding what they participate in, but not necessarily buying anything,” Galaxy Digital Head of Research Alex Thorn posted on X. According to data split by Thorn in his X post, the stockpile would largely be made up of bitcoin rather than alternative digital assets.

Others are fearful that the path to creating a bitcoin stockpile may not be entirely hurdle-free.

“As I’ve been saying, we will need legislation for a ‘exactly’ [strategic bitcoin reserve], and that won’t pass,” posted Castle Island Ventures Partner Nic Carter.

Despite the managing director order, the odds of a bitcoin strategic reserve happening in the U.S. this year dropped from a peak of 76% to 61% through the past day, according to prediction market Polymarket.

Protections for Crypto Users and Regulatory Clarity

That said, there is oodles more for the crypto industry to cheer about in the executive order.

“The President’s EO today is mostly about setting up the quickly processes and teams to improve crypto policy,” Coin Center Executive Director Peter Van Valkenburgh posted on X Thursday.

The crypto manufacture has often criticized the lack of clarity on regulations as well as the enforcement-driven approach by the U.S. Securities and Exchange Commission. Some of their calamities may have already begun to get redressed.

For example, after the executive order was signed the SEC rescinded a contentious crypto accounting guide called Staff Accounting Bulletin No. 121 (SAB 121) that effectively made it impractical for traditional banks to act as custodians for bitcoin.

“SAB 121 was fatal for the banking industry, and only stunted American innovation and advancement of digital assets,” U.S Senator Cynthia Lummis, a Republican from Wyoming, posted on X.

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