U.S. Accelerates Bitcoin Reserve Implementation, Reducing Ban Probability

David Bailey, the CEO of Bitcoin Magazine, has announced that the U.S. government is accelerating the implementation of the proposed Bitcoin reserve, moving faster than initially expected. This development follows President Donald Trump’s executive order, signed on March 6, which outlines the creation of a national crypto asset reserve for Bitcoin. Industry experts suggest that the administration is planning to detail its approach within days or weeks, rather than following a gradual rollout.

Bailey, in a tweet, indicated that officials are executing Trump’s instruction “at the speed of tech,” emphasizing the urgency of immediate action. He stated, “Implementation of the US Bitcoin Reserve executive order in days and weeks, not months or years.” This rapid approach has sparked discussions about whether congressional legislation is necessary for Bitcoin acquisitions. When asked if purchasing Bitcoin ahead of formal legislation would impact its chances of approval, Bailey responded that it would be beneficial.

The broader implications of the executive order have also been a topic of discussion. Matt Hougan, chief investment officer at Bitwise, noted that the move significantly reduces the probability of a future Bitcoin ban in the U.S. Additionally, it increases the likelihood of other nations establishing similar reserves. The order also puts pressure on foreign governments to act swiftly, as there is now a short-term window for nations to accumulate Bitcoin before further U.S. acquisitions.

The executive order also addresses long-standing regulatory uncertainty surrounding cryptocurrencies. According to Solana founder Anatoly Yakovenko, the order does not serve as a bailout but instead provides clearer guidelines for digital assets. He stressed the need for a stablecoin bill and banking access for cryptocurrency deposits, as well as structured rules on token issuance and DeFi under SEC and CFTC oversight.

Institutions will find it increasingly difficult to argue that Bitcoin is an unsuitable asset. Hougan pointed out that national advisory platforms and global entities may need to reconsider their stance on Bitcoin’s viability. Essentially, the formal recognition of Bitcoin by the U.S. government adds weight to its legitimacy in financial and institutional sectors.

Galaxy Digital’s head of research, Alex Thorn, distinguished between the U.S. government’s Bitcoin holdings and those designated for strategic reserves. The government currently possesses approximately 200,000 Bitcoin, but only 88,000 are allocated for the reserve. A separate 112,000 Bitcoin, seized from illicit activities, is set to be returned to Bitfinex. However, it remains uncertain whether these funds will ultimately be released as planned.