US Needs Action on Bitcoin, Not Just Support, Says Ex-Trump Advisor

The US government currently holds approximately 378,372 Bitcoin, valued at over $24 billion, according to Arkham Research. However, it has not made any new Bitcoin purchases since President Donald Trump signed an executive order to create a Strategic Bitcoin Reserve more than a year ago. The government has only maintained Bitcoin obtained through criminal seizures. David Bailey, who served as an advisor on cryptocurrency during the Trump administration, believes this situation reveals a larger issue.

Key Takeaways

The US government holds over 378,372 Bitcoin but has not made additional purchases since the creation of its Strategic Bitcoin Reserve.
David Bailey, a former crypto advisor to Trump, highlights the gap between political support for Bitcoin and tangible actions.
The government faces challenges in expanding Bitcoin holdings without incurring new debt or taxes.
Bailey remains optimistic about Bitcoin’s potential for success, emphasizing the importance of increasing ownership and voter interest in pro-Bitcoin policies.

Bitcoin

Support Isn't Enough: Bailey's Perspective

“Simply liking Bitcoin isn’t sufficient,” Bailey stated last week at the Bitcoin Investor Week Conference held in New York City. He emphasized the distinction between mere political approval and actual action that drives change.

Bailey expressed that Trump’s endorsement of Bitcoin has been genuine, but such support does not influence markets or establish policy.

The Challenge of Political Will

Bailey acknowledged that the administration took an essential first step. However, he noted that initial steps don’t necessarily lead to further action. Without the political will to overcome resistance—whether from cautious budgeters, doubtful lawmakers, or a political environment that is often resistant to new financial practices—the reserve order remains largely symbolic.

Reports have indicated that the White House's AI and cryptocurrency coordinator, David Sacks, recognized this challenge shortly after the executive order was established. Just two months following its signing, Sacks remarked that increasing the government's Bitcoin holdings would necessitate a “budget-neutral” strategy—meaning no added taxes or debt.

Bitcoin Chart Bitcoin is currently trading at $71,982. Chart: TradingView

This restriction has proven challenging to navigate, and no public framework has been released to address it. Bailey did not hold back in his criticism, stating, “Unless you’re prepared to invest the political capital required to activate the various mechanisms needed to progress,” he explained, “the result will be the same, regardless of whether a politician supports Bitcoin or not.” He highlighted the distinction between expressing an opinion and actively implementing supportive measures.

Despite this critique, Bailey refrained from expressing hopelessness about the future. He informed the conference attendees that Bitcoin can thrive without government intervention. The critical factor, as he pointed out, is a matter of timing.

“Whether it takes four years, ten years, or even twenty years,” he said, “we will eventually have a government that aligns with the necessary regulations for Bitcoin's success.”

Currently, Bailey heads KindlyMD, a Bitcoin treasury firm, and he stressed his focus on increasing Bitcoin ownership instead of waiting for governmental action. An increase in Bitcoin holders translates to more voters with a vested interest in pro-Bitcoin policies, making widespread adoption likely over time.

Featured image from Pixabay, chart from TradingView