WASHINGTON (Michigan News Source) – In part 1 of our cryptocurrency report, we covered the basics – what cryptocurrency is, how Bitcoin became the king of digital cash, and why some people treat it like a high-tech piggy bank while others use it to buy movie tickets and furniture.
But things have taken a wild turn. With President Trump stepping into the crypto game, Bitcoin’s value has skyrocketed, dipped, and left investors scrambling. From new federal policies to Wall Street’s latest crypto power moves, the digital currency world isn’t just for tech nerds anymore – it’s now a political battlefield.
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President Donald Trump recently reaffirmed his plans to create a U.S. crypto strategic reserve on his Truth Social account, which is related to his January Executive Order titled “Strengthening American Leadership in Digital Financial Technology.” He signed this order to make America the “crypto capital” of the world.
The executive order establishes a working group on digital assets and is led by David Sacks, White House czar for AI and crypto. He co-founded PayPal and has been vocal about making the U.S. more crypto-friendly. The working group is responsible for recommending a federal regulatory framework for digital assets and evaluating the potential establishment of a national digital asset reserve. The working group has six months to submit its recommendations to the president. The group includes the Attorney General, Commerce Secretary, Treasury Secretary, SEC Chair, Commodity Futures Trading Commission Chair and others.
If the United States was to develop a national digital asset reserve, this means the U.S. government would officially start stockpiling digital assets, adding to what it already has. The United States already owns more than $18 billion worth of bitcoin obtained through legal seizures, according to crypto tracking firm Arkham Intelligence.
The reserve currently announced by Trump includes Bitcoin, Ethereum, XRP, Solana, and Cardano (ADA).
Bitcoin or bust? Crypto reserve plan sparks fierce divide.
The idea of a crypto strategic reserve has sparked sharp debate, with factions deeply divided. According to Tangem, a high-tech company in the blockchain sector, as of February 2025, data from CoinMarketCap and other crypto tracking platforms show that 25,000 cryptocurrencies exist. Additionally, the number of crypto tokens has surpassed 36.4 million, with projections suggesting we could hit 100 million by the end of 2025. For perspective, there were fewer than 3,000 tokens in 2017– 2018 and fewer than 500 in 2013–2014.
Bitcoin Maximalists (“Maxis”) argue that only bitcoins should be considered for the reserve, while others question the need for a reserve at all. Critics from all sides are also asking whether the government plans to simply hold crypto or actively trade it. While Trump might be able to establish the reserve (or digital wallet) via executive order, funding it would likely require congressional approval. So far, the crypto community remains split – not just on whether the reserve should exist, but on its purpose and execution.
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On Friday, March 7th, the White House is holding the very first crypto summit which will be chaired by Sacks. The Office of Communications says, “Attendees will include prominent founders, CEOs, and investors from the crypto industry, as well as members of the President’s Working Group on Digital Assets.”
On the same day, the U.S. Bureau of Labor Statistics will release February’s unemployment numbers, and Fed Chair Jerome H. Powell is scheduled to deliver a speech on the economic outlook for the U.S.. These events could further influence the cryptocurrency market.
Why does a reserve matter?
If the United States were to establish a crypto reserve, it could significantly boost the legitimacy of bitcoins and other altcoins, signaling broader institutional acceptance. Such a move might encourage increased adoption and investment, both domestically and internationally. Other nations could take this as a cue to develop their own cryptocurrency reserves, further integrating digital assets into the global financial system. This domino effect could lead to greater regulatory clarity, stability, and mainstream acceptance of cryptocurrencies, potentially reshaping how governments interact with decentralized finance.
Final thoughts: crypto is here to stay.
Whether you think bitcoins are the greatest financial revolution or a glorified Ponzi scheme, one thing’s for sure – it’s not going away. And with Trump now getting Uncle Sam involved, the world of cryptocurrency just got a lot more interesting.
