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As the inauguration of president-elect Trump draws nearer, there is a palpable sense of excitement within crypto circles in general and Bitcoin ones in particular. After all, Trump has all but promised to deploy the US government's sizable stash of seized Bitcoins towards the creation of a strategic reserve, one that almost guarantees substantial price appreciation. Yet, now we are getting nuanced details that might serve to dampen some of the heretofore unbridled euphoria among Bitcoin proponents.
To wit, the New York Post is now reporting that the Trump team is mulling the idea of an "America-first strategic reserve," which would prioritize US-origin coins such as Solana, USD Coin, and Ripple, to the detriment of Bitcoin.
The Trump administration is considering a strategic Bitcoin reserve. The U.S. based other coins reserve is fake news. They’d have to buy companies too.
I did recommend Trump and team to launch a sovereign wealth fund then buy companies that foster U.S. strategic interests. https://t.co/WhcVUr6rPX
— Gabor Gurbacs (@gaborgurbacs) January 16, 2025
This idea, however, is already receiving a sizable pushback from Bitcoin maximalists. Given the sensitivity of the Trump 2.0 administration to any overt criticism, especially from what it perceives as its support base within crypto circles, we would hazard an educated guess that the idea of an America-first reserve will struggle to reach fruition. And, betting markets seem to agree.
While the odds of President Trump establishing a strategic Bitcoin reserve within his first 100 days in office are currently languishing at just 36 percent, the odds for such a reserve materializing some time in 2025 reside comfortably at 55 percent, and that too after the publication of the aforementioned report from NY Post.
Meanwhile, here are some of the pro-crypto and pro-Bitcoin steps that the incoming Trump administration is expected to take in the next few days and weeks:
- First-ever Crypto Ball in Washington DC hosted by David Sacks, the incoming crypto and AI czar.
- The SEC will halt all pending crypto- and Bitcoin-related enforcement actions against entities as it undertakes a comprehensive review of all digital asset regulations.
- Pending crypto-related court cases by the SEC will be reviewed.
- Terminating the rumored crypto de-banking policies.
- Creating a strategic digital asset reserve.
- Repealing SAB 121 - a guidance document provided by the SEC on digital assets that requires all custodians to list crypto assets on their balance sheet and create a corresponding liability of an equal value, thereby precluding banks from dealing in Bitcoin and other crypto assets.
- Promoting the use of stablecoins via dedicated legislation.
Do you think the incoming Trump administration 2.0 will launch a strategic Bitcoin reserve in 2025? Let us know your thoughts in the comments section below.
