As bitcoin retreats from record-setting highs above $90,000, crypto experts see a silver lining—growing optimism that U.S. President Donald Trump could establish a strategic national Bitcoin reserve.
Trump, who won re-election last week, has the authority to create a U.S. Bitcoin reserve without Congressional approval, according to Bitcoin Magazine CEO David Bailey. In a post on X (formerly Twitter), Bailey said the “verdict from the experts” is that the president could “implement a fairly large acquisition program” to accumulate Bitcoin for the federal government.
Tens of billions of dollars to go big will need Congress, but we can start right away at a MicroStrategy scale.
David Bailey, Bitcoin Magazine CEO
A source familiar with the matter told CoinDesk that an executive order is currently being drafted for Trump to sign, which would set the Bitcoin reserve plan in motion. The order is likely to face some opposition, but proponents believe it would strategically position the U.S. at the forefront of the evolving global financial system.
Government Bitcoin Adoption Gains Momentum
The notion of a U.S. Bitcoin reserve is not without precedent. MicroStrategy executive chairman Michael Saylor, who has advocated for corporate Bitcoin adoption, believes the federal government should follow suit. Saylor pointed to historical investments like the Louisiana Purchase and Fort Knox gold as examples of strategic reserves the government has maintained.
Other government entities are already moving toward Bitcoin. The Pennsylvania House of Representatives introduced a bill this week that would allow the state treasury to hold up to 10% of its funds in Bitcoin. This comes as a growing number of U.S. states and municipalities explore ways to adopt or invest in cryptocurrency.
Crypto Markets React to Shifting Regulatory Tides
The regulatory climate is also shifting in favor of certain cryptocurrencies. XRP surged over 22% in the past 24 hours, outperforming Bitcoin and other major tokens, as traders speculate that the incoming crypto-friendly Trump administration could benefit Ripple Labs in its battle with the SEC.
- 18 U.S. states are suing the SEC over its approach to crypto regulation
- XRP price reached levels not seen since March 2022 amid the rally
- Traders see potential for a more favorable environment for Ripple and other U.S. crypto firms
While Bitcoin is pulling back from its euphoric post-election rally, the larger trend points to a brightening future for crypto in the U.S. With high-level government officials now openly discussing a national Bitcoin reserve, and regulatory progress being made, the pieces may be falling into place for the next major bull run.
