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Victoria d’Este
Published: March 12, 2025 at 5:10 pm Updated: March 12, 2025 at 5:10 pm
Edited and fact-checked:
March 12, 2025 at 5:10 pm
In Brief
In a landmark move for the crypto industry, former President Donald Trump hosted a high-profile summit with digital asset leaders, signaling a shift in U.S. policy. The event underscored his administration’s intention to undo many of the regulatory measures introduced under President Biden.
Trump used the meeting to underline his dedication to make the U.S. “the crypto capital of the world” and undoing the Biden government’s tight rules on the industry as crypto companies become a major influence in political contributions for the 2024 election.
Establishing the Bitcoin Reserve
Through an executive order on Thursday, just before convening a crypto meeting at the White House, President Donald Trump created a Strategic Bitcoin Reserve and a cache of other digital assets.
President Donald Trump established a Strategic Bitcoin Reserve via an executive order released on Thursday, therefore signifying a significant legislative change towards digital assets. The Treasury Department will oversee the reserve, which will be funded with Bitcoin (BTC) seized in criminal and civil forfeiture cases.
The order highlighted Bitcoin’s status as the “original cryptocurrency” and emphasized the “strategic advantage” of accumulating BTC due to its fixed supply. Additionally, a U.S. Digital Asset Stockpile was established to manage other tokens.
However, Trump’s social media post revealing plans to stockpile Bitcoin, Ethereum, and three other tokens sparked backlash from the crypto community.
Crypto Leaders at The Digital Asset Summit
Trump’s summit brought together key industry figures, including Michael Saylor (MicroStrategy), Brian Armstrong (Coinbase), Cameron and Tyler Winklevoss, and David Bailey.
Also in attendance was Zach Witkoff, co-founder of Trump’s own crypto venture, World Liberty Financial. The event featured top officials, lawmakers, and influential investors in the sector.
What Went on at The Digital Asset Summit
Former President Trump swept the elite of the crypto sector at the innovative Digital Asset Summit, presenting his ideas for a government-backed digital assets stockpile.
A key highlight was Trump’s push for a strategic reserve of Bitcoin, formalized through an executive order issued just before the summit. The order also outlined plans for a broader reserve of other digital assets.
Trump underlined that Bitcoin obtained via criminal and civil asset forfeitures will back the reserve, therefore guaranteeing no expense on to taxpayers.
“We don’t want any cost to the taxpayers,” he stated, reinforcing his stance on minimizing government expenses.
White House crypto czar David Sacks also expressed a similar opinion, verifying that budget-neutral approaches will be used throughout reserve building. But his comments let down some market players who had anticipated a more definite strategy for acquiring fresh tokens.
The effect of the meeting was evident in the market because the price of Bitcoin dropped to $85,521 after the announcement. Though specifics on how the reserve would run are lacking, the event highlighted Trump’s continuous support of the digital asset sector and its expansion forward.
Many at the event, including legislators and business executives, commended the government for encouraging creativity and opening legal routes for cryptocurrency.
Mixed Reactions from Industry Leaders
Leaders in the sector expressed gratitude for the meeting and complimented Trump and his staff for fostering a more cooperative climate. Many believed that the government’s transparency was an important shift after years of being “under attack” for concerns of security and consumer protection.
Following the meeting, the Office of the Comptroller of the Currency confirmed that U.S. banks would no longer have to obtain particular regulatory clearance to participate in certain crypto-related activities, therefore facilitating the adoption of digital assets by the financial industry.
However, some concerns emerged. JP Richardson, CEO of Exodus, pointed out that the proposed strategic reserve could be a “big point of contention,” particularly regarding the inclusion of coins other than Bitcoin.
Although he owns some of the suggested tokens, Richardson argued they did not belong in the reserve, as they posed a higher risk and operated in a “very different way.”
Les Borsai, co-founder of Wave Digital Assets, noted that for the first time, many industry leaders felt they were entering a “collaborative discussion” despite not being invited.
The Reserve Expanding Beyond Bitcoin
Ripple CEO Brad Garlinghouse commended Trump for recognizing that the scope of cryptocurrencies goes beyond just Bitcoin. Linked to Ripple, XRP is one of the four other cryptocurrencies Trump said may be included into the proposed reserve.
While JP Richardson highlighted that the crypto industry is still “relatively nascent,” he expressed concerns about adding smaller coins that might pose more “risk.”
Brian Armstrong, CEO of Coinbase, agreed that a Bitcoin-only reserve was likely “the best option.” Both Richardson and Armstrong were present at the summit, where these differing viewpoints emerged.
Ending The War on Crypto
Scott Bessent, Treasury Secretary, stated that the Trump administration would put an end to the “regulatory weaponization” against digital assets.
He emphasized that the U.S. must lead in digital asset strategy to stay ahead in the global digital economy.
Bessent also reassured that, with stablecoins serving a supporting function, the U.S. dollar would remain the principal reserve currency used worldwide.
Trump has fundamentally changed federal crypto policy since becoming office; the Securities and Exchange Commission (SEC) has reversed the strict laws of the previous government, including dropping investigations and lawsuits against big companies like Coinbase and Kraken.
Some Causes for Concern
While the summit highlighted a new approach to crypto, some investors were left wanting more. After the meeting, bitcoin saw a 4% drop, ending the week down 8%. The main source of unease was David Sacks, the White House’s crypto czar, declaring the establishment of a “strategic bitcoin reserve,” but with no imminent intentions for more crypto purchases.
The decisions Trump made about which cryptocurrencies to include—Bitcoin, Ethereum, and others—generated controversy within the community. Concerns about the government ending up “picking winners and losers” among cryptocurrencies arose.
Jeff Park, from the investment group Bitwise, echoed this sentiment, labeling the executive order as an “imperfect outcome.” He pointed out that an executive order, without broader legislative support, might not have the lasting impact many in the industry hoped for. As he pointed out, without the backing of collective legislation, such orders are unlikely to spark the transformative changes that many investors anticipated.
Can Crypto Give the U.S. Financial Leadership Worldwide?
For Sergey Nazarov, co-founder of Chainlink, the critical issue is how the U.S. can leverage blockchain technology to maintain its global financial dominance. Nazarov emphasized that global leadership in finance is defined by “assets,” particularly those that the U.S. generates and can be repackaged for others.
He argued that tokenizing major financial markets, such as treasuries, investment funds, and real estate, is essential. Nazarov views this as the next significant financial shift, comparable to the transition from paper-based markets to internet-based financial products, and believes it will shape the next 50 years of finance.
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria d’Este
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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