Even though we already have a Strategic Bitcoin Reserve in El Salvador, it has become one of the most discussed topics for the last few months, only after the U.S. started working on it.
The news, discussions, and regulations regarding it are emerging almost every day; the expectations are mixed, just as are the opinions. But what is clear to me is that it is a big step for the crypto industry.
We have gone through years of crypto being mistrusted, crypto companies struggling with stringent regulations that limit the possibilities for innovations, people associating crypto with risks or fraud — and the list can go on.
But now, the progress is evident, and the U.S. is in a position of a trendsetter that influences how other nations engage with digital assets.
The Legal Framework for Crypto Governance
Since quite a lot has happened, it will be better to go chronologically. The inauguration of Donald Trump was highly anticipated in the crypto community, and people expected him to provide a more friendly environment. The wait was not long: a few days after the inauguration, a dedicated crypto task force within the SEC was created.
Then, executive orders regarding cryptocurrencies were signed, which also established the Presidential Working Group on Digital Asset Markets, which was meant to work on evaluating the creation of a strategic national digital assets stockpile. This sparked different reactions, with people worried that Bitcoin wasn’t mentioned directly, which is understandable since it is the asset with the biggest investments. However, considering the potential of other digital assets and such news as, for example, Ripple CEO discussing with Trump the potential to make XRP a part of the U.S. strategic reserve, thinking that only Bitcoin will be included does not seem right.
On Feb. 2, 2025, we got other updates when David O. Sacks held a press conference to share new plans for US leadership in digital assets.
The key messages included:
The Bitcoin Strategic Reserve is in the early stages of the evaluation of its feasibility. The Sovereign wealth fund might also include cryptocurrencies. SEC launched a dedicated website for the Crypto Task Force to provide clarity on crypto laws. Stablecoins (like USDT and USDC) are the priority since they can ensure the dominance of the US dollar at the international level, so we might soon anticipate regulations regarding them. The creation of a transparent regulatory environment for crypto businesses is in process.How can it influence the market?
Global Power Shifts
Historically, U.S. financial policies have had a far-reaching impact, with other nations often adopting similar frameworks to ensure access to U.S. markets. The same principle can be applied to cryptocurrency, as the US is now moving toward establishing a legal infrastructure that could become the de facto global standard. Countries that delay might face higher entry costs and reduced influence in the digital economy. And it, in fact, already motivated other nations to do the same.
Source: https://x.com/CoinRank_io/status/1886971759296925800By removing restrictions on U.S. citizens participating in cryptocurrency-related markets, the government is opening access to one of the wealthiest and most influential user bases worldwide. Digital assets will most likely become a crucial part of the economy, especially if influential countries adopt them on a governmental level. Nations that fail to act may find themselves increasingly dependent on those that have secured an early advantage in digital assets.
The chart indicates which U.S. states have already officially backed the Bitcoin Strategic Reserve initiative and how close bills in these states are to final adoption.However, there are risks as well. It is not a secret to anyone that crypto is volatile, and we can never be sure about where the price goes. The market reacts to many things, and those reactions are also not always predictable. Also, the market is “shallow” since speculative traders outnumber long-term institutional investors, but it is possible to solve this problem with a thorough legislative framework.
Structure and Ethics of the Crypto Market
Speaking about changes, many expect an immediate market surge following these developments, but the reality is likely to be more gradual. The integration of digital assets into national reserves and financial systems will take time. It is a complex process that requires infrastructure development, legal refinement, and international coordination. However, the trajectory is clear.
After the establishment of the Strategic Bitcoin (or digital asset) Reserve and the development of new regulations, the first likely scenario is increased institutional participation and overall mainstream adoption; we can already see such dynamics. For example, the recent crypto executive order is said to trigger a surge in investment — major asset managers like BlackRock, Fidelity, and Grayscale reported a combined $1.9 billion in inflows over a week. The total inflows reached $4.8 billion this year, pushing the global crypto market cap to $3.4 trillion.
However, while new regulations may provide more stability and investor protection, they also raise concerns about decentralization and market manipulation. For instance, if governments control large portions of digital assets, they could influence market prices and liquidity. While this is not entirely new (central banks already do this with traditional currencies), it challenges the foundational ethos of cryptocurrency as a decentralized financial system.
At the same time, the push for clearer regulations has undeniable benefits. The repeal of restrictions such as SAB 121, which initially raised some worries, is actually a step toward the democratization of the industry. This is likely to increase public trust and boost acceptance; the most important thing is to achieve a balance between oversight and innovation, which anyone has not done yet.
The post Opinion: Bitcoin Reserves Are Going Global — Who Is Late to the Party? appeared first on Cryptonews.
