President Donald Trump sent a dramatic signal to the cryptocurrency industry with his directive to establish cryptocurrencies as a long-term investment for the U.S. government. However, as time passes, the progress on this initiative appears to be stagnant, and officials involved seem to indicate that the wait could be lengthy.
Following Trump’s March directive to initiate the stockpile, a now-expired deadline was set for the Treasury Department to devise a strategy for managing reserves of bitcoin and other digital assets. As of now, there has been no public disclosure regarding a structured plan for the “accounts in which the Strategic Bitcoin Reserve and United States Digital Asset Stockpile should be located.” The directive called for two separate reserves: one exclusively for bitcoin and the other encompassing all other digital assets.
Disclosures from Trump’s chief crypto advisers, including Bo Hines, suggest that the report detailing these developments may not necessarily be made public. Hines observed, “there’s nothing in the [executive order] that mandates that report becomes public,” although he noted that the administration might opt to release it eventually.
Despite this uncertainty, Hines provided some updates regarding the government-wide audit to assess the cryptocurrency assets held by federal agencies, including the U.S. Marshals Service. “They have received the numbers from the different entities inside the government,” Hines explained, referencing Trump’s requirement for federal agencies to report their crypto holdings by early April. “Now the process begins in terms of establishing the reserve, the actual infrastructure behind it.”
Trump’s executive order marked a significant shift, offering federal endorsement to cryptocurrencies after years of skepticism from the previous administration. Following the announcement, the price of Bitcoin (BTC) has surged by 25%, indicating a positive market reception.
Industry experts, such as Hailey Miller of the Digital Chamber’s Digital Power Network, have urged quick action to translate Trump’s vision into reality. “President Trump’s proclamations have laid a powerful foundation, but now it’s time to move from vision to execution. The momentum is real. What we need now is coordinated follow-through,” Miller emphasized.
With key legislators working to draft bills aimed at operationalizing Trump’s order, attention is shifting to their efforts. Senator Cynthia Lummis has taken a lead role in the Senate with her Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, which intends to convert the president’s groundbreaking executive action into enduring legislation.
While Lummis views the U.S. as a potential leader in bitcoin investment, she and her colleagues recognize that there are pressing priorities that must be addressed within cryptocurrency legislation. Representative Nick Begich from Alaska, who is developing parallel legislation in the House of Representatives, acknowledged the need for initial crypto frameworks surrounding market regulations and stablecoins before shifting attention to the BITCOIN Act.
Concerns regarding the timelines for passing market structure and stablecoin bills linger, complicating the legislative pathway to a focus on cryptocurrency reserves. As the deadline for these initial bills extends toward September, uncertainty surrounds when Congress will have the opportunity to consider the reserves proposal.
Begich is still working on garnering support for his legislation, reaching out to crypto stakeholders to rally congressional backing. The success of these strategies could serve as an indicator to committee leadership about the potential for the bill’s passage.
As emphasized by Senator Lummis, the federal support from the president is crucial, and she hopes to increase congressional understanding of Bitcoin’s fundamentals. While it is clear that Trump’s intention is not to allocate taxpayer funds towards building crypto reserves, his directive encourages the administration to explore alternative funding avenues to acquire digital assets.
Hines revealed that federal officials are presently brainstorming various methods to amass “digital gold,” expressing optimism about moving swiftly on this initiative.
The U.S. government is estimated to possess approximately 200,000 bitcoin, although further public transparency regarding these holdings remains pending. The BITCOIN Act aims to acquire around 5% of the global bitcoin supply—about one million coins—over five years, paralleling the size of the country’s gold reserve.
Proponents, like Begich, argue that bitcoin should not be seen merely as an ancillary financial instrument, but rather as an integral asset within the broader economy.
The conceptual challenge surrounding this digital strategic reserve lies in the fact that a government hold on bitcoin is distinct from traditional strategic reserves, which are designed for commodity release in times of need.
While federal lawmakers undertake the groundwork, some state governments are already advancing ahead in establishing their own crypto reserves, with Texas leading the charge in public crypto investments following Trump’s order. This indicates a growing interest in investing public money into cryptocurrencies on a state level.
Read More: Trump Orders ‘Fort Knox’ Bitcoin Reserve and Digital Assets Stockpile
