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The U.S. is becoming pro-crypto but prices have yet to respond
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One of the biggest mysteries in the cryptoasset sector is, despite the rapid and comprehensive pivot of U.S. policymakers to one of a pro-crypto outlook, why cryptoasset prices have yet to respond decisively and in a sustained manner. These actions include, but are not limited to multiple executive orders connected to the crypto sector – including the formation of a Strategic Bitcoin Reserve – as well as efforts to rollback Operation Chokepoint 2.0 and other punitive regulatory efforts. Additionally, the first-ever White House Crypto Summit attracted business leaders and investors from across the crypto sector, providing a direct line of communication between the industry and the Executive branch for the first time. In addition, these policy actions and events have been supported by a more bullish narrative from business leaders, legislators, and investors across different economic areas.
With all of these occurrences crypto investors and policy advocates would be forgiven to expect prices and investment funds to be much higher and more positive than have turned out to be true in 2025. So far the opposite has been true, with prices down significantly since initially topping $100,00 following the U.S. election results. Let’s take a look at a few reasons why.
Less Than Expected From The Bitcoin Reserve
Although the long-awaited strategic bitcoin reserve is now a reality via executive order the facts that were disclosed during the E.O. announcement and follow-up interviews have left some members of the crypto community less than impressed. While the U.S. has established both a strategic bitcoin reserve as well as the non-bitcoin digital asset stockpile there are several items worth examining.
First, the bitcoin that will form the SBR will not be comprised – at least as of this writing – of new bitcoin purchases undertaken by the U.S. government. Rather, the bitcoin that are already held by the government as a result of seizures and other enforcement actions have been converted to form the reserve. Second, even though the Treasury and Commerce Secretaries will be looking into budget-neutral reasons to acquire additional bitcoin there was no timeline that was disclosed. Lastly, despite expectations and comments starting that tax code changes would be forthcoming, in the days following the bitcoin reserve announcement there have no such pronouncements.
In short, while the news regarding the SBR was welcomed by the marketplace the specifics have been underwhelming for investors.
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