At the Blockworks Digital Asset Summit in Manhattan, President Donald Trump submitted a pre-recorded address, marking the first time the US president spoke at the crypto conference. He reaffirmed the administration’s commitment to making the US a major hub for cryptocurrency and Bitcoin, and criticised the previous administration’s approach. He has pledged to end regulatory crackdowns like “Operation Chalk Point 2.0” and has announced a policy shift in favour of digital assets. Originally coined by Nick Carter of Castle Island Ventures, the term refers to efforts to block crypto companies from banking services, similar to the 2013 initiative aimed at high-risk industries.
Since taking office in January, Trump has signed several executive orders related to digital assets. In January he founded a working group on digital assets, followed by orders to create strategic Bitcoin reserves and digital asset stockpiles. His administration’s policies allow the government to retain seized Bitcoin instead of selling it, reversing Biden-era liquidation practices. Trump argued that this approach would prevent the US from selling Bitcoin at an undervalued price.
Trump’s code embrace elicited a mixed reaction. Institutional investors welcome his policy, but many in the Bitcoin community remain skeptical. Bitcoin maximalist Justin Bechler has rejected the administration’s crypto initiative, particularly the recent White House crypto summit, in support of lobbyists who drive government-controlled digital assets. The summit, held in the beginning of March, brought together industry leaders and policymakers to discuss regulations. Treasury Secretary Scott Bessent highlighted the importance of Stablecoin surveillance, saying the US dollar will help maintain global control. Bo Hines, a crypto advisor at the top White House, suggested that the Stablecoin bill could be passed within two months.
Despite Trump’s Pro-Bitcoin stance, the market responded negatively to his strategic Bitcoin reserve order. After temporarily surpassing $92,000, Bitcoin fell 5.7% within an hour of the announcement, then fell further the next day, eventually falling 7.3% before recovering slightly to $87,200. Investors were hoping to buy Bitcoin directly by the government, but instead the administration chose to hold the forfeiture assets.
Congress is currently considering legislation to expand government crypto holdings. Senator Cynthia Ramis introduced the Bitcoin Act. Rep. Byron Donald proposed another bill that would allow federal agencies to add Bitcoin to their preparations if the purchase remains “budget neutral.” Trump has urged lawmakers to pass lawmakers that will encourage institutional investment and technology growth, and to pass legislation that establishes clear and simple cryptographic regulations.
This is not the first time Trump has promoted Bitcoin. At the Bitcoin 2024 conference in Nashville, he urged his supporters to “never sell your Bitcoin” and pledged that his administration would hold all the bitcoins held by all governments. His most recent speech at the Blockworks Summit lasted three minutes and was announced a day before the event. While some view his involvement as a sign of increasing mainstream acceptance, others continue to withstand the government’s impact on digital assets.