Trump’s Executive Order Paves the Way for Bitcoin’s Integration into US Financial System
In a major move towards integrating Bitcoin into the US financial system, President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile.
This order, aimed at utilizing cryptocurrency seized in criminal cases, marks a pivotal step in the adoption of Bitcoin, according to industry experts.
Joe Burnett, head of market research at Unchained, hailed the move as a breakthrough, stating that this executive order marks the US’s first concrete step in recognizing Bitcoin as a key asset for global finance. The announcement, however, saw Bitcoin’s price drop by over 6%, falling from $90,400 to $84,979, as investors had expected the government to purchase more Bitcoin directly, which did not materialize.
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Despite the price dip, the executive order has solidified Bitcoin’s role in global finance, positioning it alongside traditional financial reserves. This move has signaled a significant shift in how governments are approaching inflation protection, financial security, and liquidity. As the seventh-largest global asset, Bitcoin is now seen as an integral part of the financial ecosystem.
The crypto world is eagerly awaiting further details at Trump’s White House Crypto Summit on March 7, which is expected to provide more insight into the reserve and stockpile plans. The creation of a Bitcoin reserve could also open the door to new financial products, including Bitcoin-backed lending and innovative cross-border settlement solutions, as suggested by Burnett.
Additionally, Bitcoin-based decentralized finance (BTCFi) has seen rapid growth, with a massive increase in total value locked (TVL) in 2024, driven by Bitcoin’s growing market value and the development of BTCFi platforms like Babylon, which controls a large portion of the market.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
