Bitcoin Magazine CEO David Bailey has stated that the U.S. government is implementing the proposed Bitcoin reserve faster than anticipated.
President Donald Trump’s executive order, signed on March 6, outlines a national crypto asset reserve for Bitcoin. Meanwhile, industry pundits believe the administration is detailing its approach within days or weeks instead of a gradual rollout.
US Government Implementing Bitcoin Reserve in Weeks
In a tweet, Bailey suggested that officials are executing Trump’s instruction “at the speed of tech,” prioritizing immediate action.
“Implementation of the US Bitcoin Reserve executive order in days and weeks, not months or years,” Bailey wrote.
The rapid approach has raised questions about whether congressional legislation is required for Bitcoin acquisitions. When asked on X if purchasing Bitcoin ahead of formal legislation would impact its chances of approval, Bailey responded that it would help.
Broader Benefits of US BTC Reserve
Meanwhile, discussions have emerged regarding the broader implications of the executive order. Matt Hougan, chief investment officer at Bitwise, highlighted that the move significantly reduces the probability of a future Bitcoin ban in the U.S.
Additionally, it increases the likelihood of other nations establishing similar reserves. The order also pressures foreign governments to act swiftly, as a short-term window now exists for nations to accumulate Bitcoin before further U.S. acquisitions.
Notably, the executive order eliminates long-standing regulatory uncertainty surrounding cryptocurrencies. According to Solana founder Anatoly Yakovenko, the order does not serve as a bailout but instead provides clearer guidelines for digital assets.
He stressed the need for a stablecoin bill and banking access for cryptocurrency deposits. He also called for structured rules on token issuance and DeFi under SEC and CFTC oversight.
Moreover, institutions will find it increasingly difficult to argue that Bitcoin is an unsuitable asset. Hougan pointed out that national advisory platforms and global entities such as the International Monetary Fund (IMF) may need to reconsider their stance on Bitcoin’s viability.
Essentially, the formal recognition of Bitcoin by the U.S. government adds weight to its legitimacy in financial and institutional sectors.
US Bitcoin Holdings and Unresolved Questions
Elsewhere, Galaxy Digital’s head of research, Alex Thorn, distinguished between the U.S. government’s Bitcoin holdings and those designated for strategic reserves. The government currently possesses approximately 200,000 Bitcoin, but only 88,000 are allocated for the reserve.
A separate 112,000 Bitcoin, seized from illicit activities, is set to be returned to Bitfinex. However, it remains uncertain whether these funds will ultimately be released as planned.
we think current US bitcoin balance available for re-purpose into a reserve is max 88k BTC, only 43% of current government holdings. that’s bc of the ~198k BTC now held by USG, 112k BTC will be returned to bitfinex
market will learn the difference between “seized” & “forfeited”
— Alex Thorn (@intangiblecoins) March 7, 2025
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