David Edwards
The U.S. government is moving forward with its Bitcoin reserve initiative at an unexpectedly rapid pace, according to Bitcoin Magazine CEO David Bailey.
President Donald Trump’s executive order, signed on March 6, outlines the establishment of a national Bitcoin reserve, a move that industry experts initially expected to roll out gradually. However, Bailey suggests that officials are executing the plan with urgency, completing the process within days or weeks rather than months.
US Bitcoin Reserve Fast-Tracked
In a recent social media post, Bailey emphasized that the executive order is being implemented “at the speed of tech,” prioritizing immediate execution.
“Implementation of the US Bitcoin Reserve executive order in days and weeks, not months or years,” he stated.
This accelerated approach has sparked debate over whether congressional approval is necessary for Bitcoin acquisitions. Responding to concerns about legislative hurdles, Bailey asserted that proactive purchases could improve the chances of formal approval.
Strategic and Global Implications
The decision to establish a Bitcoin reserve carries significant global and institutional implications. Matt Hougan, CIO at Bitwise, believes this move reduces the likelihood of a future Bitcoin ban in the U.S. and encourages other nations to establish similar reserves.
Additionally, the order puts pressure on foreign governments to act swiftly, as a limited window remains for Bitcoin accumulation before further U.S. acquisitions.
Notably, the executive order eliminates some of the regulatory ambiguity that has long surrounded cryptocurrencies. Solana founder Anatoly Yakovenko emphasized that the order is not a bailout but rather a framework providing clearer guidelines for digital assets.
He also stressed the urgent need for regulatory clarity on stablecoins, banking access for crypto deposits, token issuance, and DeFi oversight under the SEC and CFTC.
Furthermore, institutional arguments against Bitcoin as an asset class are becoming increasingly difficult to justify. Hougan noted that national advisory platforms and global financial entities, including the International Monetary Fund (IMF), may need to reassess their stance on Bitcoin.
US Bitcoin Holdings and Unresolved Questions
Despite the momentum, questions remain about the U.S. government’s Bitcoin holdings and their intended purpose.
Alex Thorn, head of research at Galaxy Digital, distinguished between Bitcoin already held by the government and those designated for strategic reserves. While the U.S. government currently holds approximately 200,000 BTC, only 88,000 BTC are allocated for the reserve.
An additional 112,000 BTC, seized from illicit activities, is set to be returned to Bitfinex. However, uncertainty persists regarding whether these funds will be released as planned.
As the U.S. advances its Bitcoin reserve strategy, the move signals a paradigm shift in digital asset adoption, reinforcing Bitcoin’s role in the global financial system.
