Bitcoin Stabilizes Following Trump’s Crypto Executive Order Without Clear Strategic Reserve Plan
President Donald Trump has taken a significant step towards bolstering the United States' position in the cryptocurrency and blockchain sectors by signing an executive order aimed at enhancing digital financial policy. Despite the ambitious nature of the announcement, the cryptocurrency market reacted with measured optimism, as Bitcoin and Ethereum posted modest gains over the past 24 hours.
Executive Order Aims to Strengthen U.S. Leadership in Crypto
Trump’s executive order introduces two main initiatives designed to foster a more robust regulatory environment for digital assets:
Formation of a Regulatory Working Group: The order establishes a dedicated working group tasked with refining existing regulations and developing a comprehensive framework for digital asset oversight. This group has been given a 60-day timeline to present initial recommendations and 180 days to outline a detailed strategic plan.
Evaluation of a National Digital Asset Stockpile: The executive order mandates an assessment of the feasibility of creating a national digital asset reserve. While this has spurred speculation about the potential establishment of a Strategic Bitcoin Reserve (SBR), the initiative remains in the exploratory phase, focusing solely on evaluating its practicality and implications.
Market Reaction: Bitcoin and Ethereum Show Stability
Following the announcement, Bitcoin experienced a brief surge, climbing to over $106,000 before stabilizing around $105,000, marking a 3% increase. Ethereum fared slightly better, with a 6% gain, while altcoins like Solana and XRP saw increases of 8% and 3%, respectively. These movements indicate a cautious yet positive response from investors, who appear to be awaiting more concrete details on the implementation of the executive order.
Valentin Fournier, an analyst at BRN, remarked, “While the strategic reserve rumors are fueling excitement, investors appear to be waiting for concrete details about the timing and implementation of this initiative before committing further.”
Skepticism and Optimism Among Analysts
The market’s tempered reaction reflects a blend of skepticism and cautious optimism. Nick Forster, founder of Derive.xyz, stated, “Despite the initial buzz surrounding the possibility of a Strategic Bitcoin Reserve under the Trump administration, the recent executive order has done little to move the needle. Traders were expecting concrete actions, not vague promises, and the market is now making it clear that hype alone isn’t enough to drive lasting impact.”
Conversely, Nigel Green, CEO of deVere Group, expressed optimism about the long-term potential of the executive order. “The U.S.’s Strategic Bitcoin Reserve is not just a possibility but an inevitability, one that would be expected to set off a cascade of similar policies worldwide,” Green told. “This could be the beginning of a fundamental shift in how wealth and power are stored and protected, and countries around the world would then be racing to acquire Bitcoin in anticipation of its role as a cornerstone of a new global financial order.”
Institutional Confidence and Regulatory Shifts
Anchorage Digital CEO Nathan McCauley highlighted the significance of the executive order, stating, “By taking a whole-of-government approach to crypto, the administration is making a significant first step toward writing clear, consistent rules of the road. We look forward to engaging with the president’s working group as Washington works to get it right on crypto.”
Additionally, the SEC has taken a positive step by rescinding the controversial Staff Accounting Bulletin No. 122, which had imposed high costs on publicly traded companies safeguarding crypto assets for third parties. This move was welcomed by industry advocates who argued that the guidance hindered broader adoption of digital assets. SEC Commissioner Hester Peirce expressed relief, saying, “Bye, bye SAB 121! It's not been fun…”