Why is the construction process of crypto strategic reserves slower than market expectations?

Creating a strategic reserve of cryptocurrency requires Congress to nod, and Congress has diverse internal opinions. Members of different parties have different perceptions and positions on cryptocurrencies. When discussing and approving the matters, the interests of all parties collided, and it was difficult to reach a consensus, which would inevitably lengthen the approval time.

Asset allocation requires selecting the appropriate cryptocurrency and determining the proportion. There are many cryptocurrencies on the market, with different characteristics, risks and potential. Although Bitcoin is well-known and has a large market value, its price fluctuates dramatically; the prospects of other emerging cryptocurrencies are unclear, and it takes a lot of research and professional analysis to accurately select and allocate proportions reasonably.

To determine the holding period, short-term returns and long-term strategic goals need to be balanced. Short-term holding can flexibly respond to market fluctuations and seize profit opportunities; long-term holding can help stabilize the market and achieve strategic layout. However, the market is unpredictable, and it is difficult to accurately judge when to operate in a short term and when to stick to it for a long time. This decision-making process is full of challenges and will delay the construction process.

Consider the holdings relative to the total supply of each asset, and prevent excessive impact on the market. Taking Bitcoin as an example, accounting for 1% of its total 21 million coins will have a significant impact on the market. How to maintain market stability while ensuring the effectiveness of strategic reserves and find the right holdings requires careful calculation and careful evaluation.

To prevent large fluctuations or jump-starts, market integrity measures need to be formulated. Setting rules such as daily trading limits must not only ensure the smooth construction of reserves, but also not excessively limit market vitality. This requires continuous exploration and adjustment in practice. Moreover, different cryptocurrency markets have different characteristics, making it difficult to formulate unified and effective rules.

Asset protection involves the selection of the appropriate crypto custodian, bank, or multiple providers. The safety, stability and professionalism of each agency should be evaluated to prevent single point of failure. At the same time, issues such as cooperation models and division of responsibilities of different institutions also need to be clarified. This process is complicated and cumbersome, which increases the time cost of construction.

The preliminary clauses proposed by Trump will encounter many obstacles in the process of becoming a formal plan. Differences between the parties on the draft may lead to repeated revisions. Moreover, the cryptocurrency market is developing rapidly, new problems are emerging, and the draft needs to keep pace with the times, which further delays the construction of crypto strategic reserves.