Crypto Requires Policy Reform Over Bitcoin Reserves, Say Executives
According to several cryptocurrency executives speaking to Cointelegraph, the cryptocurrency sector stands to gain more from regulatory clarity in the US than from former President Donald Trump’s initiative to establish a national Bitcoin (BTC) reserve.
Trump’s executive order on March 6, which proposed a US strategic Bitcoin reserve alongside a separate stockpile for altcoins, left many industry leaders feeling uninspired.
Executives are still awaiting comprehensive guidance from the White House on key issues such as securities regulation and taxation, as they expressed to Cointelegraph.
“The market is looking for a roadmap for innovation and clear directives regarding stablecoins, institutional adoption, and taxation,” stated Max Giammario, CEO of the Web3 AI startup Kindred, in his comments to Cointelegraph.
“However, the ambiguous statements and lack of prompt action have only heightened uncertainty.”
Trump signed a crypto executive order on March 6. Source: Margo Martin
In July, Trump declared his intention to transform the US into the “world’s crypto capital” and proposed establishing a Bitcoin reserve similar to the nation’s gold reserves.
While his March 6 executive order fulfilled part of his campaign promise, it left traders feeling let down.
Rather than directing the government to procure cryptocurrencies, the reserve and stockpile will initially consist solely of digital assets seized by law enforcement.
Since March 6, Bitcoin has dipped nearly 13% as traders respond to the developments amidst ongoing macroeconomic instability.
Altcoins have experienced similar declines, with the entire crypto market cap decreasing by over $400 million.
Executives warn that losses may intensify without prompt and clearer US policy guidance.
“Should Trump’s administration offer more transparent regulations concerning stablecoins, ETFs, and institutional adoption, it could help altcoins regain their momentum,” noted Alvin Kan, COO of Bitget Wallet, to Cointelegraph.
“If not, Bitcoin dominance may persist, as it continues to be the leading macro asset.”
Despite the challenges, many in the crypto industry remain hopeful, pointing to Trump’s supportive rhetoric on crypto and his selection of pro-crypto figures for significant regulatory roles in the US.
“The direction of US crypto policy under Trump […] is still uncertain,” commented Theodore Agranat, director of Web3 at Gunzilla Games, to Cointelegraph.
“However, given the appointments in critical positions, we can anticipate a continuous stream of positive developments and initiatives for both crypto overall and American crypto projects specifically.”