David Sacks Pushes for Bitcoin Reserve and Crypto Regulation Overhaul

Trump Adviser Backs Bitcoin as National Reserve Amid Regulatory Shift

David Sacks, President Trump’s special adviser on artificial intelligence and cryptocurrencies, is advancing a financial agenda that prioritizes Bitcoin as a strategic reserve asset, stablecoin legislation, and regulatory clarity for digital assets. His efforts align with the administration’s broader push to integrate Bitcoin into national reserves while ensuring proper oversight. 

Sacks reaffirmed that 15 U.S. states are already moving to adopt Bitcoin as a reserve asset, citing its security and role as an “excellent store of value.” He emphasized Bitcoin’s unmatched resilience, noting that “no one has hacked its security,” positioning it as the strongest digital currency. The initiative, a key component of Trump’s campaign promises, is gaining traction among legislators and financial policymakers who view Bitcoin as a hedge against economic volatility.

Lawmakers are also focusing on stablecoin regulation, with the House and Senate banking committees working toward a comprehensive framework expected within six months. Senator Bill Hagerty has introduced a proposal that distributes oversight between state regulators, the Federal Reserve, and the Office of the Comptroller of the Currency (OCC) under the Treasury Department. Sacks underscored the economic impact of stablecoins, stating they could drive trillions in demand for U.S. Treasuries, potentially lowering long-term interest rates while reinforcing the country’s dominance in digital finance. 

He stressed that the Financial Innovation and Technology Act (FIT21), previously stalled under the Biden administration, will be revisited, reflecting the government’s renewed commitment to keeping financial innovation within U.S. borders. “Financial assets are destined to become digital, like all analog industries,” Sacks asserted, highlighting the necessity of clear regulatory guidelines to prevent capital flight and ensure domestic economic benefits.

Regulatory uncertainty has long plagued the U.S. crypto sector, a point Sacks drove home with strong criticism of the Securities and Exchange Commission (SEC). He blamed the agency’s vague policies for driving businesses offshore, contributing to fraud cases such as FTX’s collapse. He described how crypto entrepreneurs faced unjust regulatory scrutiny, stating, “The SEC wouldn’t tell founders what the rules were, and then would prosecute them. Many told me personally that they were debanked just for starting a crypto company.” 

To counter this, the administration is backing a new Digital Assets Working Group to eliminate anti-crypto banking restrictions, ensuring financial institutions can engage with digital assets without facing regulatory roadblocks.

Beyond Bitcoin and stablecoins, Sacks is also pushing for a clear classification system for NFTs and memecoins, advocating for their recognition as collectibles rather than securities. If implemented, this distinction could remove them from SEC jurisdiction, fostering growth in the sector while maintaining consumer protections. 

His proposals have gained bipartisan momentum, with Senate Committee members, including Bill Hagerty, Tim Scott, French Hill, Glenn Thompson, and John Boozman, backing regulatory clarity. Lawmakers are increasingly recognizing digital assets as vital to U.S. financial infrastructure, signaling a shift toward structured and predictable oversight. Sacks’ agenda reflects a broader effort to position the U.S. as a global leader in crypto, reinforcing its economic and technological influence while addressing long-standing regulatory gaps.

This article has been refined and enhanced by ChatGPT.