Crypto Fed Reserve Is Here
Crypto Fed Reserve Is Here
It’s finally happened as the U.S. President Donald Trump signed an executive order on March 6, 2025, establishing a "strategic bitcoin reserve" called U.S. Digital Asset Stockpile and Strategic Bitcoin Reserve; Establishment (EO 14233).
This executive order focuses on including Cryptocurrency in the U.S’s federal reserve and position by retaining around 200,000 Bitcoins assets previously confiscated through various legal proceedings. Dubbed a "digital Fort Knox," this reserve is intended to serve as a store of value instead of dumping on the market.
Executive Order EO 14233
The executive order not only mandates the creation of the bitcoin reserve but also calls for a comprehensive audit of the government's cryptocurrency holdings. It also tells federal agencies to develop strategies for acquiring additional bitcoins without incurring extra costs to taxpayers i.e dumping on Centralized Exchanges (CEX). This EO follows President Trump's commitment for a broader agenda to integrate digital assets into the financial system.
Big Changes are coming at the U.S Securities and Exchange Commission (SEC) under Acting Chair Mark Uyeda has announced a big shift in regulatory policy. On March 10, 2025 Uyeda announced plans to reconsider a 2022 proposal that required certain cryptocurrency firms to register as alternative trading systems.
The initial process was facing a lot of opposition from the crypto industry, which argued that it created impossible restrictions on decentralized exchanges (DEX0.
Uyeda confirmed these concerns stating that it was a mistake to conflate Treasury market regulations with stringent measures on the crypto market. He focused on the SEC's current commitment to create a more collaborative relationship with the digital asset sector and moving away from the previous "regulation by enforcement" approach which has failed to work.
The news has been quite positive currently within the United States as the establishment of a strategic bitcoin reserve has been celebreated as a forward thinking strategy to harness the potential of digital assets for national prosperity and increased economic power.
Many believe that this move not only legitimizes cryptocurrencies but also positions the U.S. as a leader in the global digital economy. But lets remember there is currently an absence of plans to purchase additional bitcoins which may limit the reserve's impact. But not mass dumping 200k Bitcoin’s on the market is always a positive.
European Union Concerns
The European Union has continued to express concerns regarding the U.S.'s inclusion of cryptocurrencies. Eurozone finance ministers are concerned that such policies could undermine the eurozone's monetary sovereignty and financial stability. The fear is that the U.S.'s pro crypto stance might encourage large technology companies to launch their own cryptocurrency based payment systems, potentially disrupting traditional financial systems and impacting the euro area's economic equilibrium.
Bitcoin did experienced a 4.2% decline on March 10, 2025, settling around USD 79,500. This drop contributed to a 12% decrease over the past week with other cryptocurrencies like Ether and XRP also witnessing declines of approximately 3%. Analysts attribute this downturn to the realization that the U.S. government does not plan to purchase additional bitcoins for the reserve instead continuing to acquire them through taking them via illegal activity.
For the United States, the establishment of a strategic bitcoin reserve signifies a formal acknowledgment of cryptocurrencies as valuable assets with potential geopolitical significance. This move could pave the way for increased institutional adoption and integration of digital assets into mainstream financial systems.
However, it also raises questions about regulatory oversight, market stability and the potential for government intervention in decentralized markets.
The SEC's reconsideration of its regulatory stance reflects a growing recognition of the unique characteristics of decentralized financial systems. By moving away from a one-size-fits-all regulatory framework, the SEC aims to create a more conducive environment for innovation while ensuring consumer protection. This balanced approach could encourage responsible development within the crypto industry, fostering trust and collaboration between regulators and market participants.
Let us know your thoughts in the comments section below and how you think the future might look for Bitcoin and the broader cryptocurrency sector. Also, what are your thoughts on confiscation to grow the Bitcoin Reserve fund, in it’s current view do you think it is more of a risk than reward?
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Thanks for sharing important news. I live in Italy and as far as the European Union is concerned, for now, after having despised crypto, it has done the only thing it knows how to do, regulate badly! For now they have regulated the crypto sector in a somewhat confusing way. I went to three accountants, one had unclear ideas, the other two had no idea. I believe that from today the USA, in the crypto sector, has positioned itself to have a dominant position in the sector! PIZZA
Unfortunately, I believe that the government's reliance on confiscations as a primary method of increasing reserves raises questions about the ethics and sustainability of this strategy.
it won't be sustainable in the long
Europe is... interesting. The systems tend to be extremely resistant to paradigm changes, but when they decide that "something is OK," broad-based adoption is almost immediate.
As for building a reserve on conficated assets, I don't really think that has legs to run on, since I'm pretty sure the crooks that are the alleged source of those BTC will swiftly pivot and find a different trade asset.