Experts React: How Trump’s Bitcoin Reserve Could Prevent a U.S. Ban
The post Experts React: How Trump’s Bitcoin Reserve Could Prevent a U.S. Ban appeared first on Coinpedia Fintech News
President Trump recently signed an executive order on the creation of a strategic Bitcoin reserve and a digital assets stockpile.
The executive order announcement came just ahead of the White House’s highly anticipated industry summit, where crypto leaders will meet with members of Trump’s administration to discuss policy. Many had been eagerly expecting the president to reveal details of the crypto reserve either before or during the event, making the timing even more significant.
Industry Experts Weigh In-
Industry experts are now weighing in on the potential impacts of the U.S. government’s decision to establish a Strategic Bitcoin Reserve. Matt Hougan, the CIO of Bitwise outlines the key impacts of the U.S. Strategic Bitcoin Reserve. He noted that this move dramatically reduces the likelihood that the US government would some day “ban” bitcoin.
Further, he also believes that this would dramatically increase the likelihood that other nations will establish strategic bitcoin reserves following the steps of US.
This means that the U.S. decision to establish a Bitcoin reserve creates a race for other countries to creates a sense of urgency to act quickly. Other nations may rush to create their own Bitcoin reserves before the U.S. buys more, potentially driving up the price. This gives them a limited time to secure Bitcoin at current prices.
Additionally, this move makes it harder for institutions, like financial advisors and organizations such as the IMF, to argue that Bitcoin is too risky or unsuitable to hold. It shows that even the U.S. government sees Bitcoin as a valuable asset.
“Establishing a U.S. strategic Bitcoin reserve and digital asset stockpile is a huge moment for both crypto and American leadership on the global stage,” remarked Nathan McCauley, CEO and co-founder of Anchorage Digital, one of the business leaders who is set to attend the roundtable.
Criticisms Prevail
However, Charles Edwards, founder of Capriole Investments, criticized the U.S. government’s Bitcoin reserve strategy, calling it “underwhelming and disappointing.” He argued that without a plan to buy more Bitcoin, the reserve strategy is essentially superficial and lacks meaningful impact,
Presidential orders don’t carry the same legal weight as laws passed by Congress, so it’s still uncertain how Trump’s administration will handle the specifics of the order, which hadn’t been fully revealed by Thursday night. Additionally, the exact value of the U.S. government’s current crypto holdings remains unclear.
