The United States’ decision to establish a strategic cryptocurrency reserve

The United States’ decision to establish a strategic cryptocurrency reserve is expected to drive global adoption and influence regulatory policies

The U.S. administration's decision to create a strategic cryptocurrency reserve is set to drive global adoption and influence regulatory policies, Binance CEO Richard Teng asserted Thursday at the CONVERGE LIVE conference in Singapore.

The initiative, backed by President Donald Trump, marks a shift in Washington's approach to digital assets, rendering it a landmark moment for the industry.

At the event, Teng highlighted that the U.S. Government will be allocating seized digital assets—Bitcoin, Ethereum, XRP, Solana's SOL, and Cardano's ADA—to a national crypto reserve.

This move is expected to pressure other governments to follow suit, according to Teng, who pointed out the increasing presence of cryptocurrencies at the highest levels of economic policy.

“We have moved from a period where there was regulatory uncertainty and hostility toward crypto to one where the largest economy in the world is saying, ‘we want to embrace this’,” said Teng.

The establishment of a national reserve could encourage other governments to consider similar strategies, potentially leading to a wave of institutional adoption across global markets.

Moreover, Chao Deng, CEO of Hashkey Capital, noted the rapid momentum behind crypto adoption, especially under Trump's administration.

“The level of adoption from both the institutional and retail sides of crypto assets is something that we've never seen before, and the strategic reserve will only serve to reinforce that trend,” Deng added.

The shift in U.S. policy comes after years of regulatory crackdowns under former President Joe Biden, whose administration imposed strict enforcement measures on crypto firms, citing concerns over fraud and money laundering.

Industry leaders have long protested against those policies, arguing that they stifled innovation and forced companies to seek friendlier jurisdictions.

A key factor in the new regulatory landscape is the dismantling of “Operation Choke Point 2.0”, an alleged effort under the Biden administration to pressure banks into cutting off services to crypto companies.

As explained by Teng, the previous regulatory environment was characterized by “regulation via enforcement,” making it difficult for the industry to grow.

However, under Trump's leadership, the reopening of banking access for crypto firms is seen as a major breakthrough.

“They encourage and allow banks to be involved with crypto. This is a huge step for the crypto and Web3 industry,” Deng further explained.

Despite the bullish sentiment from industry leaders, Bitcoin prices dropped following Trump's announcement as details of the strategic reserve plan fell short of investor expectations.

Market analysts noted that broader economic concerns, including Trump's tariff policies, also contributed to a cooling of risk appetite.

However, Teng brushed off the price pullback as a "tactical retreat", asserting that crypto markets remain strong and are not immune to macroeconomic fluctuations.

He concluded that Washington's pro-crypto stance and the appointment of industry-friendly regulators would provide long-term stability and growth drivers for digital assets.

With the U.S. now actively integrating crypto into its financial ecosystem, stakeholders expect regulatory clarity to improve and institutional adoption to rise.

The question now is whether other governments will follow the U.S. lead, setting the stage for a new era of global digital asset integration.