US Cryptocurrency Reserve

Main article: US economy

2025

The market does not understand the meaning of legitimizing cryptocurrencies for the US economy. The only explanation is the fight against the Fed

At the beginning of 2025, there are very pretentious statements that have a distant relation to reality:

• The United States will give cryptocurrencies a role similar to that of gold, recognizing the official position of bitcoin in the state reserve, bringing cryptocurrencies into legal space.

• This could speed up the process of considering other countries to create their own strategic crypto reserves, increasing the demand for cryptocurrencies.

• The decision of the US government to create a strategic cryptocurrency reserve has the power of legitimizing bitcoin at the institutional level, attracting the cash flows of investment funds.

• Donald Trump seeks to make the United States the "crypto pillar of the world," which implies creating a favorable regulatory environment for the crypto industry and attracting investment in this area.

The key question that is not answered is why?

One of the undeclared reasons is the creation of a "parallel" demand for treasure through stablecoins tied to the dollar and US government bonds.

The stablecoin market is dismissively small - $220 billion for March 10, 2025, which almost corresponds to the US budget deficit in one month, Spydell Finance wrote.

The potential for stablecoin accumulation per year does not exceed $30-50 billion, which cannot change the balance of demand in the US public debt market, forming at best no more than 2.5% of the need for net borrowing.

• The large-scale spread of cryptocurrencies can in the future "blur" the dominance of the dollar in the global arena. If everything works out the way Trump and countries say it will begin to use decentralized crypto assets more widely to trade and store financial assets, their dependence on the US financial system will decrease, which will undermine the influence of the dollar.

• Cryptocurrencies, within the framework of their decentralized essence, allow you to do without traditional infrastructure (banks, SWIFT, etc.), which means bypassing the political and economic influence of the United States, including sanctions and control of cross-border capital flows, reducing the political and foreign economic levers of influence of the United States.

• Settlements in OTC bitcoin or stablecoins can give some countries independence from the dollar and reduce their need to keep dollar reserves.

• Risks of infection and domino effect. The crypto system is closely interconnected, and problems in one player quickly spread to others. A surge in insolvency, the hacking of a major exchange or falling asset prices could trigger a chain reaction among related platforms, hedge funds and investors. There is a high risk of infection if banks are integrated into the crypt.

• The large-scale spread of cryptocurrencies could weaken the effectiveness of monetary policy, FRS worsening the DCT transmission in proportion to the spread of the crypt.

• Lack of transparency and fraud risks. Unlike the dollar, whose payments are identified and moderated in real time, which allows you to challenge transactions, the ability to effectively track transactions in the crypt is reduced, increasing the risks of tax evasion and illegal activities.

You can justify why crypt legitimization is needed by cryptoludomans - this is their direct income, but there is not a single justification why the US economy and the financial system need crypt, Spydell Finance wrote.

Any potential benefit is absorbed by incomparably huge negative consequences and risks.

With a high probability, the goal of legitimizing cryptocurrencies in the United States is anecdotally banal - crypto bandits got to power using media resources, hiding behind the power of the state apparatus in order to deface crypto speculators faster and more efficiently.

On the other hand, there is reason to believe that a fictitious crypto reserve is only the beginning of a legislative storm. The more cryptocurrencies integrate into the US economy and financial system, the lower the Fed's control measure and the stronger the blow to the status of the dollar, creating parallel points of liquidity accumulation. Trump has repeatedly spoken of his desire to be able to influence Fed decisions.

Creation of a reserve and disappointment that purchases of cryptocurrencies are not planned

In early March 2025, the President of the United States announced the creation of a strategic reserve of digital assets, including bitcoin, Ethereum, Solana (SOL), XRP and Cardano (ADA). The decision is aimed at strengthening the US position in the field of digital finance and reducing dependence on traditional financial institutions, the US presidential administration said.

In a message on the social network Truth Social, Donald Trump called the creation of a cryptocurrency reserve an important step to strengthen "the critical sector after years of corruption attacks by the Biden administration." Trump stressed that his goal is to make the United States "the crypto pillar of the world."

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Фото: Freepik

After the publication of the US President's statement, all cryptocurrencies he mentioned showed a sharp increase in price. The cost of Solana, XRP and Cardano increased by more than 15%, and bitcoin added about 3.5%. By the time of writing the article, the bitcoin exchange rate reached $93,250, which is 8.43% higher than the previous value.

The idea of ​ ​ creating a strategic reserve of bitcoins that the United States already has has been repeatedly voiced by Trump before. In the summer of 2024, at the Bitcoin 2024 crypto conference, the president announced that his administration would stop selling confiscated bitcoins.

According to the Arkham platform, 198,109 BTCs are under the control of the US authorities by February 2025, which is equivalent to about $17 billion. Most of these funds were confiscated as part of various investigations.

In January 2025, President Trump signed an executive order regulating the crypto market and considering creating a cryptocurrency reserve. The document entitled "Strengthening American Leadership in Digital Financial Technology" was published on the official website of the White House.^[1]

The next day, March 3, a new powerful wave of sales began, including due to the insider that the "crypto reserve" is a fake.

And so it happened. Instead of new money, the crypto reserve simply repackages the existing status of the confiscated crypt by about 200 thousand bitcoins, without creating a new cash flow to the market.

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