Crypto Capital Of The World? Lawyer Doubts US Bitcoin Reserve Can Deliver
United States President Donald Trump’s decision to create a national crypto stockpile and a Strategic Bitcoin Reserve (SBR) has sparked debate. Industry analyst Jake Chervinsky contends that while some see it as a positive move, it is not enough to establish the US as the global leader in cryptocurrencies.
A Solid Start But Not The Complete Solution
Chervinsky, the chief legal officer at Variant, believes that while the SBR is a positive step, it does not make the US as the global center of cryptocurrency. He claims that in this situation, true leadership demands more than just keeping up with digital assets. Without strong regulations that foster innovation, the US faces the risk of falling behind countries with superior regulatory frameworks.
He argued that fostering an environment that allows blockchain engineers and entrepreneurs to thrive is just as important as hoarding Bitcoin. Without clear regulations and support, businesses may choose to operate elsewhere, abandoning the US.
1/ The Reserve and Stockpile are likely good for US fiscal policy and market prices, but neither are enough to make the USA the crypto capital of the world.
For that, we need new policies empowering entrepreneurs to launch protocols and products made in the USA.
Here’s how 🧵
— Jake Chervinsky (@jchervinsky) March 7, 2025
The Future May Be Shaped By The Crypto Summit
The SBR has been a key topic as crypto leaders gathered at Trump’s White House Crypto Summit with strategic reserve in focus. The event brought together financial professionals, business executives, and policymakers to examine the country’s approach to digital assets. Many in the cryptocurrency community view this as a watershed moment to push for better legislation and more transparent regulations.
As of today, the market cap of digital assets stood at $2.78 trillion. Chart: TradingView
Chervinsky has made a strong case for the necessity of a long-term strategy. If the government truly wants to be at the forefront of cryptocurrencies, he argues, it must do more than just buy Bitcoin. Policies that promote blockchain development, safeguard investors, and provide regulatory certainty will be essential to global competition.
“For that, we need new policies that will empower entrepreneurs to launch protocols made in the USA,” he posited. “Being ‘the crypto capital’, he said, doesn’t mean “holding the most crypto wealth compared to other countries.”
Chervinsky pointed out that to be a crypto powerhouse, it means “having the most innovation, the most jobs, the most influence, and the most economic activity.” And, in order to attain this, the government “must support businesses, not just assets.”
Other Nations Move Fast
Other countries are making progress as the United States considers its next move. Countries like Singapore, the United Arab Emirates, and Switzerland have passed laws that are favorable to cryptocurrencies, which attracts businesses and innovators. The retention of outstanding people and creative ideas in these areas is at risk if the US does not take such action.
The digital currency sector is also keeping an eye on how the government handles regulations. Some US businesses have considered relocating their operations abroad due to policies that are difficult to understand, not to mention ongoing legal issues.
Featured image from Gemini Imagen, chart from TradingView
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