In a policy shift, U.S. President Donald Trump signed an executive order to create a national digital asset stockpile. According to a White House press release, the directive also forms the Presidential Working Group on Digital Asset Markets, aimed at strengthening the nation’s leadership in digital finance.
Creation of Digital Asset Working Group
The executive order sets up the Presidential Working Group on Digital Asset Markets, chaired by David Sacks, the White House AI and Crypto Czar. This group will include high-ranking officials, such as the Treasury Secretary and the SEC Chairman, alongside other relevant department heads. Its mandate includes evaluating the stockpile’s creation and developing a Federal regulatory framework for digital assets, including stablecoins.
The working group will engage with industry stakeholders to ensure the development process reflects market realities and leverages industry expertise. This aligns with the administration’s commitment to positioning the U.S. as a global leader in crypto and artificial intelligence innovation
.A critical aspect of the order is its prohibition on Federal agencies from advancing Central Bank Digital Currency (CBDC) projects. Additionally, the order revokes digital asset policies established under the previous administration, including the Treasury Department’s Framework for International Engagement on Digital Assets.
Strategic Bitcoin Reserve Speculation
The executive order has drawn attention to its potential implications for Bitcoin. While some industry figures believe it aligns with the president’s previous mention of a strategic Bitcoin reserve, others have clarified the term “stockpile” refers to managing existing holdings.
Bloomberg analyst James Seyffart noted that Trump has consistently emphasized the term stockpile rather than reserve. Galaxy Digital’s Alex Thorn supported this interpretation, emphasizing that the stockpile focuses on maintaining existing digital asset positions.
Ripple Labs Faces Accusations Amid SBR Debate
Ripple Labs has been scrutinized for allegedly lobbying against establishing a Strategic Bitcoin Reserve (SBR). Pierre Rochard, Vice President of Research at Riot Platforms, has brought forward accusations that Ripple Labs is actively opposing the SBR initiative by influencing political processes with significant financial contributions.
https://x.com/BitcoinPierre/status/1882472124092416355
The executive order explicitly ruled out the possibility of a single-asset reserve, paving the way for multiple cryptocurrencies, including XRP, to be considered. Pierre Rochard identified Ripple Labs as a primary obstacle to the Strategic Bitcoin Reserve, dismissing speculation that agencies like the Federal Reserve or Treasury were the main barriers.
Rochard pointed to Ripple’s alleged lobbying efforts, claiming the firm is throwing millions at politicians to derail the SBR initiative. He further alleged Ripple’s actions are motivated by its focus on promoting XRP and protecting its marketing narratives, including support for central bank digital currencies (CBDCs) built on Ripple’s platform.
Rochard also referenced previous instances where Ripple Labs reportedly opposed Bitcoin mining during President Joe Biden’s administration. According to him, these actions align with the company’s broader efforts to prioritize XRP and related technologies over Bitcoin.
Ripple Labs CEO Responds
In response, Ripple Labs CEO Brad Garlinghouse disputed the claims, emphasizing Ripple’s alignment with President Donald Trump’s campaign goals of supporting American companies and technologies. Garlinghouse argued that Ripple’s initiatives increase the likelihood of establishing a crypto strategic reserve encompassing Bitcoin and other digital assets.
https://x.com/bgarlinghouse/status/1882513710616621442
The Trump administration’s pro-crypto stance is further reflected in recent appointments. Mark Uyeda was named acting Chairman of the SEC, while Caroline Pham was appointed Chair of the Commodity Futures Trading Commission (CFTC). Both officials are viewed as supportive of crypto regulations. Uyeda’s first actions included establishing a crypto task force led by Hester Peirce to advance regulatory developments in the sector.
Deaton’s Perspective on SBR and Legal Requirements
The Strategic Bitcoin Reserve (SBR) concept continues to generate discussion as U.S. officials and industry stakeholders examine its feasibility. John E. Deaton, a prominent attorney and XRP advocate, has emphasized the importance of a strong legal and regulatory framework in shaping the future of such a reserve.
https://x.com/JohnEDeaton1/status/1882542042032799901
Deaton clarified that “Strategic Bitcoin Reserve” depends on its context. He stated that an SBR could involve retaining seized digital assets in a government-controlled vault rather than selling them.
This approach could be enacted through a presidential executive order. However, if the government intends to purchase Bitcoin directly, Deaton noted that legislative action would be required, referencing Senator Cynthia Lummis’ proposed bill as a potential pathway.
Data from Arkham Intelligence reveals the U.S. government controls over 198,000 BTC, alongside other cryptocurrencies. The executive order outlines the need for policies to determine whether these assets should be retained or liquidated.
SEC Withdraws Controversial Crypto Accounting Guidance SAB 121
The U.S. Securities and Exchange Commission (SEC) officially withdrew Staff Accounting Bulletin No. 121 (SAB 121), a crypto accounting rule introduced in 2022. The decision follows the departure of former SEC Chair Gary Gensler and aligns with the agency’s evolving regulatory stance under new leadership.
According to an SEC notice, Staff Accounting Bulletin No. 122 has replaced SAB 121. The original rule required companies holding cryptocurrency for clients to classify these assets as liabilities on their balance sheets.
This provision was widely criticized for raising compliance costs and discouraging banks from offering digital asset custody services. The SEC now advises entities to rely on accounting standards set by the Financial Accounting Standards Board (FASB) or International Accounting Standards (IAS).
Industry Criticism and Congressional Pushback
Since its release, SAB 121 has faced opposition from the crypto and banking sectors, as well as bipartisan lawmakers. Critics pointed to the lack of public consultation and argued that the rule disproportionately targeted digital asset firms. Congress’s efforts to repeal the rule through a bipartisan resolution were vetoed by then-President Joe Biden.
The decision to withdraw SAB 121 coincides with Gary Gensler’s resignation as SEC Chair. Acting SEC Chair Mark Uyeda has signaled a shift in regulatory priorities, appointing Hester Peirce to lead the agency’s crypto task force. This marks a potential turning point in the SEC’s approach to digital asset regulation under President Donald Trump’s pro-crypto administration.
The Executive Order directive has sparked varied responses. Binance co-founder Changpeng Zhao expressed optimism about future Bitcoin reserves. Senator Cynthia Lummis’ leadership of the Senate’s Digital Assets Subcommittee was also highlighted as a development. Meanwhile, economist Peter Schiff commented that the executive order prioritizes a broad digital asset policy over Bitcoin exclusivity.
