Former Trump advisor warns: Merely "supporting Bitcoin" is far from enough; the U.S. needs to actively advance a strategic Bitcoin reserve

On March 4th, it was reported that David Bailey, who previously served as a cryptocurrency advisor in the Trump administration, recently stated that if the U.S. government wants to truly integrate Bitcoin into the national strategic level, merely expressing support is not enough. It also requires actual policy resources and political capital. He pointed out at the Bitcoin Investor Week Conference in New York that if the government hopes to strengthen Bitcoin’s position in the global financial system, more proactive measures must be taken.

David Bailey is currently the CEO and Chairman of Bitcoin asset management firm KindlyMD. He said that the Trump administration had indeed taken an important step by signing an executive order in 2025 to establish a “Strategic Bitcoin Reserve,” but progress on this plan has been limited so far. According to industry data, the U.S. government’s current Bitcoin holdings mainly come from assets seized during law enforcement efforts against illegal activities, and a true national-level proactive allocation has not yet occurred.

Bailey also pointed out that it is even difficult to determine the exact size of the U.S. government’s Bitcoin reserves. On-chain analysis firm Arkham’s statistics show that U.S.-related addresses hold approximately 378,000 Bitcoins, worth over $22 billion at current market prices, but these assets were not acquired through active purchasing.

At the policy level, there have been discussions within the U.S. government on how to establish Bitcoin reserves without increasing fiscal deficits or tax burdens. White House AI and crypto affairs head David Sacks previously stated that if funds could be raised in a “budget-neutral” way, the U.S. might expand its Bitcoin reserves in the future.

Despite slow policy progress, the market remains focused on Bitcoin’s long-term development. Some industry analysts believe that as institutional adoption increases and the global financial system becomes more accepting of digital assets, Bitcoin’s long-term price potential remains significant.

However, Bailey emphasized that political support alone is not enough to push Bitcoin into a new development stage. He said that if the government wants Bitcoin to truly become a national asset, more policy investment and increased social participation are necessary. “As more voters hold Bitcoin, the power to push policies will also grow,” he stated.