President Donald Trump’s latest executive order (EO) introduces new rules for how the U.S. government will handle digital assets like Bitcoin (BTC), XRP, and other cryptocurrencies. The order focuses on two key components: a strategic reserve for Bitcoin and a broader digital asset stockpile that includes XRP and other altcoins.
What is the Strategic Reserve for Bitcoin?
According to Fox Business’ Eleanor Terrett and David Sacks, the EO establishes a strategic reserve for Bitcoin (BTC), which will be the U.S. government’s primary digital asset. This reserve will be funded using the approximately 200,000 BTC tokens already in the government’s possession. These Bitcoins were seized over the years through criminal and civil forfeitures—meaning they were taken from illegal activities. The government will not need to buy any additional Bitcoin with taxpayer money. In fact, officials are authorized to explore ways to acquire more Bitcoin, but only through methods that do not cost taxpayers.
What is the Digital Asset Stockpile?
Alongside the Bitcoin reserve, the EO also creates a digital asset stockpile, which will contain cryptocurrencies other than Bitcoin. The stockpile will likely include assets like XRP, ADA (Cardano), ETH (Ethereum), and SOL (Solana), as announced by the President. However, unlike Bitcoin, the government will not actively look to purchase more of these altcoins. Instead, it will explore ways to acquire them without spending taxpayer dollars, such as using cryptocurrencies already seized from illicit activities.
The Role of Seized Assets
A key point discussed by experts is how the government will build its stockpile of XRP, ADA, and other cryptos without purchasing them. According to a former Goldman Sachs employee and founder of EasyA, the government will use seized assets to fill the stockpile. Over the years, the government has confiscated a large amount of cryptocurrency as part of legal actions against criminal activity. This means no new taxpayer money will be used for the stockpile.
No Plans to Sell Crypto
The government also announced that it will not be selling any of its seized cryptocurrencies, including Bitcoin and others. This decision could reduce market volatility caused by government sales of crypto. Over the last decade, the government sold around 195,000 BTC, which some believe led to downward pressure on Bitcoin’s price. By holding onto these assets, the government is signaling a more stable approach to managing its digital holdings.
What Does This Mean for the Crypto Market?
The decision not to sell seized cryptocurrencies, along with the creation of a digital asset reserve and stockpile, is seen as a positive step for the crypto market. It reduces potential selling pressure and might help stabilize prices, especially for Bitcoin. Overall, these measures are viewed as bullish for the market, particularly for Bitcoin and other digital assets included in the government’s stockpile.
Ethereum has entered a critical phase in its transition to a stake-based model, crossing a major threshold with over 35 million ETH now locked in staking contracts.
This figure represents roughly 28.3% of Ethereum’s total supply and is worth more than $84 billion at current market prices.
Lido, Binance, and Coinbase Dominate Ethereum Validator Power
Blockchain analytics firm Sentora reports that this is the highest proportion of ETH ever staked. The firm stated that the trend accelerated in June when over 500,000 ETH were staked within the first half of the month.
More than 35 million ETH are now locked in staking, effectively locking nearly 30% of the total ETH supply pic.twitter.com/4RTApX2zdN
— Sentora (previously IntoTheBlock) (@SentoraHQ) June 27, 2025
Despite the enthusiasm surrounding Ethereum’s staking growth, concerns about its decentralization have emerged.
The top three Ethereum stakers—Lido, Binance, and Coinbase—now control nearly 40% of all validator balances.
Lido, a dominant liquid staking platform, holds roughly 8.7 million ETH, or 25% of all staked coins. Meanwhile, the two leading centralized exchanges, Binance and Coinbase, each manage around 7.5% of the staking market.
“A censorship or outage event affecting Lido, Binance, and Coinbase, would now hit >40% of new blocks,” Sentora warned.
Top Ethereum Staking Entities. Source: Dune Analytics
This concentration of power has reignited discussions about Ethereum’s decentralization model. The dominance of a few entities raises concerns about the network’s future governance and liquidity.
Meanwhile, the surge in staking activity, coupled with around 19% of ETH locked in long-term holdings, is reducing the liquid supply available for trading.
As a result, ETH’s float is approaching levels not seen since before the Merge, causing thinner order books and increased market volatility. Moreover, ETH spot markets are experiencing sharper price swings, which is amplifying both rallies and corrections.
In addition, DeFi platforms are also feeling the squeeze. Sentora pointed out that borrowing rates for liquid staking tokens like stETH, rETH, and frxETH are rising.
Sentora noted that these tokens may feel the pinch if their unit collateral grows scarcer. This could potentially force the lending protocols to adjust their strategies to accommodate the tightening market.
China’s recent directive for its state-owned banks to decrease reliance on the US dollar has amplified a growing trend among countries seeking alternatives to the dominant reserve assets. In some instances, Bitcoin has emerged as a viable competitor.
BeInCrypto spoke with experts from VanEck, CoinGecko, Gate.io, HashKey Research, and Humanity Protocol to understand Bitcoin’s rise as an alternative to the US dollar and its potential for greater influence in global geopolitics.
The Push for De-Dollarization
Since the 2008 global financial crisis, China has gradually reduced its reliance on the US dollar. The People’s Bank of China (PBOC) has now instructed state-owned banks to reduce dollar purchases amid the heightened trade war with US President Donald Trump.
China is among many nations seeking to lessen its dependence on the dollar. Russia, like its southern neighbor, has received an increasing number of Western sanctions– especially following its invasion of Ukraine.
Furthermore, Rosneft, a major Russian commodities producer, has issued RMB-denominated bonds, indicating a shift towards RBM, the Chinese currency, and a move away from Western currencies due to sanctions.
This global shift away from predominant reserve currencies is not limited to countries affected by Western sanctions. Aiming to increase the Rupee’s international use, India has secured agreements for oil purchases in Indian Rupee (INR) and trade with Malaysia in INR.
The country has also pursued creating a local currency settlement system with nine other central banks.
As more nations consider alternatives to the US dollar’s dominance, Bitcoin has emerged as a functional monetary tool that can serve as an alternative reserve asset.
Why Nations Are Turning to Bitcoin for Trade Independence
Interest in using cryptocurrency for purposes beyond international trade has also grown. In a notable development, China and Russia have reportedly settled some energy transactions using Bitcoin and other digital assets.
“Sovereign adoption of Bitcoin is accelerating this year as demand grows for neutral payments rails that can circumvent USD sanctions,” Matthew Sigel, Head of Digital Assets Research at VanEck, told BeInCrypto.
Two weeks ago, France’s Minister of Digital Affairs proposed using the surplus production of EDF, the country’s state-owned energy giant, to mine Bitcoin.
Last week, Pakistan announced similar plans to allocate part of its surplus electricity to Bitcoin mining and AI data centers.
Meanwhile, on April 10, New Hampshire’s House passed HB302, a Bitcoin reserve bill, by a 192-179 vote, sending it to the Senate. This development makes New Hampshire the fourth state, after Arizona, Texas, and Oklahoma, to have such a bill pass a legislative chamber.
If HB302 is approved by the Senate and signed into law, the state treasurer could invest up to 10% of the general fund and other authorized funds in precious metals and specific digital assets like Bitcoin.
According to industry experts, this is only the beginning.
VanEck Predicts Bitcoin to Become a Future Reserve Asset
Sigel predicts Bitcoin will become a key medium of exchange by 2025 and, ultimately, one of the world’s reserve currencies.
His forecasts suggest Bitcoin could settle 10% of global international trade and 5% of global domestic trade. This scenario would lead to central banks holding 2.5% of their assets in BTC.
According to him, China’s recent de-dollarization will prompt other nations to follow suit and lessen their reliance on the US dollar.
“China’s de-dollarization efforts are already having second- and third-order effects that create opportunities for alternative assets like Bitcoin. When the world’s second-largest economy actively reduces its exposure to US Treasuries and promotes cross-border trade in yuan or through mechanisms like the mBridge project, it signals to other nations—especially those with strained ties to the West—that the dollar is no longer the only game in town,” Sigel said.
For Zhong Yang Chan, Head of Research at CoinGecko, these efforts could prove catastrophic for the United States’ dominance.
“Broader de-dollarization efforts by China, or other major economies, will threaten the status of the dollar’s global reserve currency status. This could have [a] profound impact on the US and its economy, as this would lead to nations reducing their holdings of US treasuries, which the US relies on to finance its national debt,” he told BeInCrypto.
However, the strength of the US dollar and other dominant currencies has already shown signs of weakening.
A General Wave of Currency Decline
Sigel’s research shows that the four strongest global currencies—the US dollar, Japanese yen, British pound, and European euro—have lost value over time, particularly in cross-border payments.
The decline of these currencies creates a void where Bitcoin can gain traction as a key alternative for international trade settlements.
“This shift isn’t purely about promoting the yuan. It’s also about minimizing vulnerability to US sanctions and the politicization of payment rails like SWIFT. That opens the door for neutral, non-sovereign assets—especially those that are digitally native, decentralized, and liquid,” Sigel added.
This lack of national allegiance also sets Bitcoin apart from traditional currencies.
Bitcoin’s Appeal: A Non-Sovereign Alternative
Unlike fiat money or central bank digital currencies (CBDCs), Bitcoin doesn’t respond to any one nation, which makes it appealing to some countries.
For Terence Kwok, CEO and Founder of Humanity Protocol, recent geopolitical tensions have heightened this belief.
For these same reasons, experts don’t expect Bitcoin to replace fiat currencies fully but rather provide a vital alternative for certain cases.
A Replacement or an Alternative?
While Bitcoin offers several advantages over traditional currencies, Gate.io’s Kevin Lee doesn’t foresee its eventual adoption causing a complete overhaul of the currency reserve system.
Recent data confirms this. The number of Bitcoin transactions has fallen significantly since the last quarter of 2024. Bitcoin registered over 610,684 transactions in November, but that number dropped to 376,369 in April, according to Glassnode data.
The number of Bitcoin active addresses paints a similar picture. In December, the network had nearly 891,623 addresses. Today, that number stands at 609,614.
Bitcoin number of active addresses. Source: Glassnode.
This decline suggests reduced demand for its blockchain in terms of transactions, usage, and adoption, meaning fewer people are actively using it for transfers, business, or Bitcoin-based applications.
Meanwhile, the Bitcoin network must also ensure its infrastructure is efficient enough to meet global demand.
Can Bitcoin Scale for Global Use?
In 2018, Lightning Labs launched the Lightning Network to reduce the cost and time required for cryptocurrency transactions. Currently, the Bitcoin network can only handle around seven transactions per second, while Visa, for example, handles around 65,000.
“If expansion solutions (such as the Lightning Network) fail to become popular, Bitcoin’s ability to process only about 7 transactions per second will be difficult to support global demand. At the same time, as Bitcoin block rewards are gradually halved, the decline in miners’ income may threaten the long-term security of the network,” Guo, Director of HashKey Research explained.
While the confluence of geopolitical shifts and Bitcoin’s inherent characteristics undeniably create a space for its increased adoption as an alternative to the US dollar and even a potential reserve asset, significant hurdles remain.
Achieving mainstream Bitcoin adoption hinges on overcoming scalability, volatility, regulatory hurdles, stablecoin competition, and ensuring network security.
The unfolding panorama suggests Bitcoin will carve out an important role in the global financial system, though a complete overhaul of established norms seems unlikely in the immediate future.
The fourth biggest cryptocurrency of the market, XRP, is up for a major milestone, as the Chicago Mercantile Exchange group (CME) is set to launch XRP futures on May 19, 2025. CME is the world’s largest derivative market, so this decision could bring a lot of opportunity for the altcoin, especially as the XRP price attempts recovery from the earlier crash. Before CME launches the futures, let’s discuss key details around it.
5 Not-to-Miss Things About CME Group XRP Futures
The official XRP futures launch is just days away, but the hype is rising even now. It is the first ever introduction of the Ripple token on one of the biggest traditional financial systems around the world.
Interestingly, these contracts are cash settled, which means that the users would not actually have to hold XRP. Instead, they would simply bet on the XRP price movement and settle the trade with normal currency (U.S. Dollar).
It will be in two different versions, allowing investors to choose according to their capabilities. One includes the standard CME group XRP futures (XRP), where the contract size is 50,000 XRP per contract. And the other is a Micro one (MXP), having 25,00 XRP per contract.
The latter one is more accessible for the smaller traders. Another thing to note is that the prices will be tracked on CME’s own XRP-Dollar Reference Rate, published at 4 p.m. daily, London time.
The Global Head of Crypto Products at CME, Giovanni Vicios, claims that this decision is made considering the rising institutional and retail demand for the Ripple token product. Recently, Teucrium launched a 2x XRP ETF. Even Robinhood is considering plans to introduce Ripple futures on its platform.
More importantly, this launch is part of the Chicago Mercantile Exchange group’s bigger plan, expanding into more altcoin derivatives.
Why is This CME Group XRP Future Launch a Big Deal?
CME launching Ripple tokens’ futures is the first ever listing of the cryptocurrency on the traditional financial market. However, this is just there’s more to it. The SEC has not approved the XRP ETF due to the regulatory issues with the asset.
Interestingly, experts like Hunt believe CME’s move could strengthen the case for XRP ETF approval, as its influence is huge.
Moreover, Paul Atkins is the new SEC Chairman after Senate approval. So, better events regarding regulatory clarity of the Ripple vs SEC, ETF, and the XRP price are anticipated.
At present, the token trades at $2.20, but investors await the Ripple price hitting $10 amid such bullish cases.
