Chiara Bianchi
President Donald Trump’s administration has swiftly prioritized cryptocurrency regulation, making significant announcements just days into his term. On Thursday, Trump signed an executive order to establish a Presidential Working Group on Digital Asset Markets, focusing on creating a federal regulatory framework for digital currencies, including stablecoins.
This group, chaired by crypto and AI advisor David Sacks, will also explore the potential for a Strategic National Digital Assets Reserve to bolster the nation’s position in the blockchain sector.
In a complementary move, the U.S. Securities and Exchange Commission (SEC) rescinded the controversial Staff Accounting Bulletin 121 (SAB 121), which previously required crypto custodians to classify customer-held digital assets as liabilities on their balance sheets.
While the announcements were welcomed by the industry, some stakeholders remain cautious about the administration’s next steps.
The SEC’s repeal of SAB 121 is seen as a transformative decision for the broader crypto ecosystem. According to Benchmark analyst Mark Palmer, this move could accelerate the integration of cryptocurrencies, such as Bitcoin, into traditional financial markets (TradFi).
“Unlike traditional assets, cryptocurrencies started with retail investors before attracting institutional interest. These recent developments signal greater legitimacy for digital assets in mainstream finance,” Palmer noted.
Bitcoin’s price has risen modestly by 1.3% following the news, but market experts anticipate significant growth as institutional interest in digital assets expands.
Market Optimism and Skepticism
Prominent figures in the industry have expressed optimism about these policy changes. Dennis Dick, a professional trader, highlighted the administration’s support for cryptocurrencies as a positive signal for Bitcoin enthusiasts, predicting strong growth over the next four years.
Bitwise CEO Hunter Horsley echoed this sentiment, emphasizing that Bitcoin’s market dynamics are maturing. “The days of Bitcoin’s extreme volatility may be behind us. With diverse ownership, from institutions to wealth managers, the asset is becoming more stable and widely accepted,” Horsley shared.
However, others, like Jaret Seiberg from TD Cowen’s Washington Research Group, remain cautious. “Task forces and commissions are symbolic but don’t equate to immediate regulatory change,” Seiberg said, adding that tangible actions, such as establishing a national Bitcoin reserve, are needed to maintain momentum.
Despite initial enthusiasm, expectations for a Strategic Bitcoin Reserve (SBR) have dwindled. The likelihood of such a reserve materializing in the near term has dropped sharply, with prediction markets like Polymarket adjusting probabilities from 40% to 20% within 24 hours.
Critics, including Nick Forster, founder of Derive.xyz, argue that the market needs concrete actions rather than speculative plans. “Until there’s a tangible commitment from the government, skepticism will persist,” Forster stated.
Crypto Policy’s Broader Implications
Trump’s pro-crypto stance is already influencing the global digital asset landscape. Venture capital giant Andreessen Horowitz recently announced the closure of its UK office, citing a shift in focus back to the U.S., which is becoming more favorable for crypto businesses under the Trump administration.
Other industry leaders, such as Anchorage Digital CEO Nathan McCauley, view the recent developments as a turning point for U.S. crypto policy. “This executive order represents a pivotal moment, signaling the government’s commitment to crafting clear, unified regulations for digital assets,” McCauley remarked.
President Trump’s administration has vowed to position the U.S. as the global leader in cryptocurrency innovation. However, while the industry celebrates early progress, market participants are eager to see how these initiatives translate into actionable policies that can sustain long-term growth.
As ETF Store President Nate Geraci succinctly put it: “The crypto industry is moving forward, with or without skeptics.”
