According to Bloomberg, President Donald Trump promised to support a legislative initiative to create a regulatory framework for stablecoins on March 7. Via an executive order, Trump also created a U.S. Strategic Bitcoin Reserve and a separate stockpile of other digital assets on March 6.
“I also want to express my strong support for the efforts of lawmakers in Congress as they work on bills to provide regulatory certainty for dollar-backed stablecoins and the digital assets market,” Trump stated in an event with crypto executives at the White House. “They’re working very hard on that.”
Accounting Today reported that the order identifies Bitcoin as a unique asset both generally and inside the cryptocurrency sector, taking note of its programmatically enforced fixed supply and decades-long role as “digital gold.” The order also highlights the Trump administration’s stance that there is a “strategic advantage to being among the first nations to create a strategic bitcoin reserve.”
Pat Camuso, head of crypto specialist firm Camuso CPA, told Accounting Today that the order shows how far cryptocurrency has gone as a strategic basis of fiscal policy, echoing the increased sophistication he has seen in his own clients. Although Camuso noted there will be challenges, specifically about regulatory clarity and public communications, there are significant possible advantages.
"This development not only legitimizes cryptocurrencies but also accelerates institutional adoption, regulatory clarity and technological advancement," Camuso said. "For businesses and governments, integrating crypto into financial strategies will demand sophisticated accounting, tax planning, and treasury management solutions. As a CPA and CFO in the Web3 space, I've seen firsthand how proper crypto accounting can transform an organization's financial strategy."
Dr. Sean Stein Smith, chair of Wall Street Blockchain Alliance's Accounting Working Group, noted that while the executive order will only set up a framework, there will be considerable implications going forward.
Moving ahead, Accounting Today reported that a possibility is a more intense focus on crypto audits. David Sack, the administration's "crypto czar," noted in several instances that one of the first priorities to move the executive order forward would be conducting an audit of current U.S. holdings. With buy-in from the executive branch, and the focus on the importance of crypto audits, the accounting profession has a chance to expand efforts to standardize the disparate crypto audit practices, Smith said.
There is also some who do not agree with the creation of the reserve. According to Accounting Today, Jack Castonguay, vice president of strategic content development at Knowfully Learning Group, had opposed the idea of the reserve from the beginning. Castonguay noted that the order functionally acts as a giveaway to current crypto investors on the U.S. taxpayer's behalf, basically a government funded bailout of crypto investors. He is against the use of the funds now held by the government, stating that it could have been utilized in several other ways including paying down the debt, mitigating childhood poverty or feeding the hungry in the U.S.
Initially, Clark Hill said that the reserve will be financed though Bitcoin seized by the U.S. as part of criminal or civil asset forfeiture proceedings, as well as any Bitcoin held by other U.S. government agencies. With the many seizures conducted by the U.S. government in the last 15 years, a considerable amount of Bitcoin falls in this definition, with some estimating the figure at approximately 200,000 bitcoins.
The order indefinitely bans the sale of any Bitcoin deposited in the Strategic Bitcoin Reserve. Thus, the U.S. will effectively become one of the biggest long-term holders of Bitcoin with the reserve's establishment.
Bloomberg also reported that Treasury Secretary Scott Bessent, who was also part of the gathering, noted that he plans to work with agencies and regulators such as the Office of the Comptroller of the Currency and the IRS on updating and amending prior guidance.
“We are going to keep the US the dominant reserve currency in the world, and we will use stablecoins to do that,” Bessent noted.
Bloomberg said that attendees to the White House roundtable gathering included Coinbase Global CEO Brian Armstrong, MicroStrategy founder Michael Saylor and Gemini co-founders brothers Cameron and Tyler Winklevoss.