President Donald Trump’s recent announcement of a U.S. strategic crypto reserve has ignited discussions across the industry.
He proposed that the government hold a mix of Bitcoin, Ethereum, XRP, Solana, and Cardano as part of this initiative. While the news fueled excitement in the crypto market, many experts remain skeptical about whether the plan will ever materialize.
Industry Experts Question Feasibility
Despite the buzz, some industry leaders have questioned the practicality of establishing a national Bitcoin reserve. BitMex founder Arthur Hayes dismissed the announcement, saying that without congressional approval or changes in gold valuation.
He added, the government simply doesn’t have the funds to buy Bitcoin or other cryptocurrencies. He suggested that, at this stage, the proposal remains just words without any real action behind it.
The process of creating such a reserve would require a bill to pass through both the House and the Senate before reaching the President’s desk. It would have to survive committee reviews, potential amendments, and bipartisan negotiations.
Without strong support from lawmakers, the bill could stall, making the reserve unlikely to happen anytime soon.
Also Read: Texas Senator Introduces Bill To Create Strategic Bitcoin Reserve, Will Others Follow Suit?
History of Similar Attempts
This isn’t the first time a government-backed Bitcoin reserve has been proposed. Several U.S. states have previously explored the idea, but none have been successful in implementing it.
The resistance at the state level suggests that a federal initiative could face even greater obstacles. Political divisions over cryptocurrency regulation, concerns about market volatility, and questions over the government’s role in digital asset investments make the road ahead uncertain.
Was Trump’s Announcement Misinterpreted?
Adding to the confusion, some believe Trump’s statement has been widely misunderstood. Crypto journalist Laura Shin pointed out that the language in Trump’s executive order does not explicitly mention a “reserve.” Instead, it instructs his working group to evaluate a potential “stockpile” of digital assets.
The difference is significant. A stockpile consists of digital assets that the government acquires through law enforcement actions, such as confiscations from criminal cases. A reserve, on the other hand, would require the government to purchase and actively manage cryptocurrency holdings.
Shin questioned why Trump’s latest statement referred to a “reserve” when the executive order itself made no such commitment.
A Long Road Ahead
For now, Trump’s crypto reserve remains an idea rather than a concrete policy. While the announcement has boosted optimism in the market, turning it into reality will require navigating a complex political landscape.
Lawmakers will need to address legal, financial, and regulatory concerns before any form of government-backed crypto reserve can take shape.
Whether this proposal becomes a defining moment for U.S. crypto policy or fades into campaign rhetoric is yet to be seen. But for now, industry experts, investors, and lawmakers will be watching closely to see what happens next.
Also Read: U.S. Crypto Task Force Eyes Creation of National Bitcoin Reserve, Reports Bernstein