The public part of the White House Crypto Summit from yesterday may be underwhelming for some, but we can extract some ideas.
First of all, it looks like there will be two crypto reserves. The main one for bitcoin (already signed into an executive order), and a separate one for alts. Seems like the opinion of bitcoin maxis prevailed, although they would have probably preferred no alts at all.
The underwhelming part for many, I'm assuming, is that no commitments to buy more bitcoin or alts have been taken. Basically, whatever comes from seizures builds up the reserves. For the bitcoin reserve, ways to buy more that "don't burden the taxpayers" are analyzed.
So... it is possible that the US will buy bitcoin, but it's unclear when or how much.
The promise that was made was to "never sell bitcoin", and currently the US has 200k of them. Well... we'll see if "never" means until the next administration.
Yeah, let's see how many non-dollar stablecoins we'll have... The AI seems to think we'll have a couple...
In my opinion, the focus of Trump's administration will be less on bitcoin and alts, and more on USD-backed stablecoins. While they might look into offering a good climate for crypto companies based in America (the mention of XRP, SOL, and ADA was not random, in my opinion, despite what crypto veterans might feel about one or the other), the biggest win for America in their MAGA quest would be to proliferate the USD-backed stablecoins, and maybe hurt other competitors for them, as a way to extend the hegemony of the USD into the digital assets age.
I'm also sure many big companies are looking for regulatory clarity on stablecoins, so they can include them into their businesses, or even create their own, new currencies. I wonder what the big retailers will do? Integrate an existing stablecoin or create their own? If a network like VISA comes up with its own stablecoin quickly enough, they (the retailers) might not go through the trouble (read risk) of creating their own.
On this subject, according to reports, Trump mentioned he wants to have stablecoin legislation on his desk by August recess, which is a few months over the original deadline of the first 100 days, so let's see what happens.
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So the 200k BTC the US owns, is is completely from ceasesures or they were bought? I want to think it's from the latter, or Trump automatically becomes president and the US that wasn't a cryptocurrency-friendly government suddenly has so much.
That's from seizures only. They haven't bought any BTC. In fact, they sold some BTC in the past, or they would have more than that.
It would interesting to see what happens to the stablecoin market. It makes me wonder if some stablecoins will just disappear after the legislation happens.
Some will likely be unlisted from exchanges, probably. We can see that with MiCA in EU, where a bunch of tokens were unlisted from Binance, including USDT.
Yo 👀 if Trump actually pushes stablecoin legislation by August, that could shake things up pretty fast. I hope the never sell Bitcoin thing lasts, because one thing that changes quickly is politics. Politicians can change their minds quicker than crypto prices, lol I hope the right thing is done in the end
The way I see it, this legislation will be useful for companies who are waiting for regulatory clarity. We'll see how beneficial they'll to to crypto as a whole. As for politicians, we know better than thinking their words mean something long term, with very few exceptions, when they profit of highly advantageous situations and introduce something that is very difficult to overturn except in similar circumstances which happen quite rarely in democracies (let's say, 2/3rds of the Parliament approval).
Learning a lot from you man, I'll keep following your articles and learning much more
as you say they will never see with this administration, if in 4 years someone goes up and decide to sell everything and dump to death its kinda meh... these accumulation would work better in a company with a long vision
Hard to build a coherent vision when whoever comes next zaps most of what the previous one has done, good or bad (that's a matter of opinion, right?).
Engaging post
Thanks.
It's to do with US govt debt.
Stablecoins purchase Treasuries to maintain the peg to the dollar. As the Chinese reduce their purchases of Treasuries, the Trump administration has decided the stablecoin community will fill that void.