President Donald Trump has signed an Executive Order to establish a Strategic Bitcoin Reserve. The initiative will consolidate Bitcoin obtained by the federal government through criminal and civil asset forfeiture proceedings. This reserve is intended to serve as a store of value, with the government opting to hold the digital asset.
Donald Trump Signs Order to Create U.S. Strategic Bitcoin Reserve
In a lengthy post on X, Crypto Czar David Sacks revealed that President Donald Trump has officially signed an Executive Order to establish the Strategic Bitcoin Reserve. This initiative is designed to safeguard Bitcoin confiscated through legal forfeiture proceedings and store it as a national asset.
The federal government currently possesses an estimated 200,000 Bitcoin, though a comprehensive audit has never been conducted. The Executive Order mandates a full accounting of all federal digital asset holdings to provide transparency regarding the government’s cryptocurrency assets.
A recent report stated that the government cannot use taxpayer money for the Strategic Crypto Reserve without congressional approval. To work around this, officials are considering alternatives such as repurposing seized Bitcoin or establishing a sovereign wealth fund.
U.S. Government Will Hold Forfeited Bitcoin
The Strategic Bitcoin Reserve will consist exclusively of Bitcoin acquired through criminal or civil asset forfeiture proceedings. The government will not sell any Bitcoin stored in the crypto reserve. This decision aims to maintain Bitcoin as a long-term store of value.
David Sacks added,
“The U.S. will not sell any Bitcoin deposited into the Reserve. It will be kept as a store of value. The Reserve is like a digital Fort Knox for the cryptocurrency often called “digital gold.”
Meanwhile, Bitcoin critic Peter Schiff was quick to note that the crypto stockpile consists only of seized digital assets and does not involve government purchases. He emphasized that no ETH, XRP, ADA, or SOL will be bought, reinforcing that the stockpile is strictly limited to confiscated tokens.
While it’s up for debate whether the government can buy more Bitcoin for the strategic reserve, the one thing the executive order makes clear is that the crypto stockpile will consist only of seized tokens, so no ETH, XRP, ADA, or SOL will be bought. So at least there’s that!
To ensure accuracy in tracking the federal government’s crypto assets, the order directs an audit of all digital holdings. This process will provide a clearer picture of the total Bitcoin and other digital assets in government possession.
In addition to Bitcoin, the Executive Order also establishes a U.S. Digital Asset Stockpile. Consequently, the government will hold digital assets other than Bitcoin that it obtained through forfeiture proceedings.
However, the stockpile will not receive new acquisitions beyond forfeited assets.
The Executive Order authorizes the Secretaries of Treasury and Commerce to develop budget-neutral strategies for acquiring additional Bitcoin. These strategies must not impose any additional financial burden on American taxpayers.
In an earlier release, David Sacks blamed the Biden administration, revealing that the U.S. lost over $17 billion by selling confiscated Bitcoin instead of holding it. He argued that the lack of a long-term strategy for seized assets resulted in significant losses for U.S. taxpayers.
XRP investors are still in the red for the year, as the popular coin crashed by over 40% from its highest level in January. This XRP price crash has erased some of the coin’s gains in November of last year. This article looks at three key reasons why Ripple may surge in the long term after Standard Chartered delivered a $693B prediction.
Standard Chartered Delivers a $695 Billion XRP Price Prediction
Analysts at Standard Chartered, who have been accurate on their crypto forecasts, have delivered a bullish XRP price prediction. In a note, the analysts predicted that it will end the year at $5.5, up sharply from the current $2. They then expect it to get to $12.5 by 2028, which would imply a 525% jump from the current level. Such a move is possible since XRP jumped by almost 500% in November.
A move to that price target would boost the coin’s market cap to over $693 billion, up from $111 billion. This prediction is based on the current circulating supply of 58 billion. Assuming that Ripple Labs unlocks about 400 million tokens a month as it has done in the past, it means that there will be about 71.47 billion XRP tokens in circulation. This would give the network a market cap of over $892 billion.
Ripple Acquisition of Hidden Road
The other main catalyst that may push XRP price higher is its latest acquisition of Hidden Road, a company that offers prime brokerage, clearing, and financing across traditional and digital assets. In a statement, one crypto analyst said the following about the transaction:
“Ripple owns a top custody platform, they now own a prime brokerage, they already do payments. There’s a new financial world being built, and Ripple will own its essential pieces and tie them together with XRPL and XRP.”
The deal will help to make Ripple a bigger player in the financial services industry. Keep in mind that Ripple is already working to create partnerships as it seeks to disrupt SWIFT, the giant network that handles trillions annually. The path to these partnerships has been made clearer after the end of theSEC case against Ripple.
XRP Price Technical Analysis Says a Rebound is Possible
The other main reason why the XRP price may rebound is that it has strong technicals. The weekly chart shows that the coin has constantly remained above the 100-week moving average, a sign that the bullish trend is still intact.
Also, the coin has retested the major S/R level of the Murrey Math Lines tool and formed a doji candlestick pattern. A doji often leads to a strong recovery over time. Ripple price has also retested the key support at $1.9752, the upper side of the cup and handle pattern that formed between 2021 and 2024.
XRP Price Chart
Therefore, the coin will likely rebound in the long term, potentially rising to the YTD high of $3.4 and then $5. A drop below the major S/R level will cancel the bullish Ripple forecast.
Regulatory sandboxes have emerged as a concept to drive innovation in a controlled setting. They allow companies to test new crypto products and services while regulators observe and adapt regulations. While jurisdictions like the UK, the UAE, and Singapore have already created sandboxes, the US has yet to create one at the federal level.
BeInCrypto spoke with representatives of OilXCoin and Asset Token Ventures LLC to understand what the US needs to build a federal regulatory sandbox and how it can unify a fragmented testing environment for innovators.
A Patchwork Approach
As the name suggests, regulatory sandboxes have emerged as a tool for providing a controlled testing ground. This environment allows entrepreneurs, businesses, industry leaders, and lawmakers to interact with new and innovative products.
According to the Institute for Reforming Government, 14 states in the United States currently have regulatory sandboxes for fintech innovation.
Of those, 11 are industry-specific and cover other sectors like artificial intelligence, real estate, insurance, child care, healthcare, and education.
Utah, Arizona, and Kentucky are the only jurisdictions among these states with an all-inclusive sandbox. Meanwhile, all but 12 states are currently considering legislation to create some regulatory sandbox for innovation.
Due to its relatively short existence, the crypto market has underdeveloped legislation. While state-level sandboxes enable innovators to demonstrate their products’ capabilities to the public, they are significantly constrained by the lack of federal regulatory sandboxes.
The Need for Federal Oversight
Though statewide efforts to create regulatory sandboxes are vital for innovation, entrepreneurs and businesses still face constraints in developing across borders or reaching an audience at a national level.
Rapid advancements in fields like blockchain and artificial intelligence (AI) add a particular layer of uncertainty, given that existing legal frameworks may not be well-suited to these technologies.
At the same time, regulators may face difficulties in developing appropriate rules for these technologies due to a potential lack of familiarity with these constantly changing industries.
As a result, industry participants are increasingly calling for creating a federal regulatory sandbox. This environment could be a collaborative framework to address the gap, facilitating communication and knowledge sharing between regulators and industry stakeholders.
“The implementation of a federal regulatory sandbox in the United States has the potential to significantly enhance both innovation and regulatory oversight by reducing the uncertainties often associated with navigating the regulatory landscape across state lines. Such an initiative could help establish a coherent framework characterized by uniformity, continuity, and a conducive environment for innovation,” said Paul Talbert, Managing Director of ATV Fund.
According to Rademacher and Talbert, this proposal would meet the needs of all players involved.
Benefits of a Federal Regulatory Sandbox
A sandbox provides innovators with a controlled environment to test products under regulatory oversight without the immediate burden of full compliance with rules that may not yet fit their technology.
It also allows regulators to acquire firsthand insights into blockchain applications, facilitating the creation of more knowledgeable and flexible regulatory policies.
“Startups should have clear eligibility criteria to determine their qualification for participation, while regulators must outline specific objectives—whether focused on refining token classification frameworks, testing DeFi applications, or improving compliance processes,” Rademacher said.
It could also help the United States reinforce its position as a leader in technological innovation.
“By fostering innovation through simplicity, regulatory certainty, and conducive environments, the United States can significantly strengthen its competitive position in the global fintech landscape,” Talbert added.
While the United States has stalled in creating a federal framework for fintech innovation, other jurisdictions around the world have already gained significant ground in this regard.
Global Precedents
The Financial Conduct Authority (FCA), which regulates the United Kingdom’s financial services, launched the first regulatory sandbox in 2014 as part of Project Innovate. This initiative aimed to provide a controlled environment for testing innovative products.
The government asked the FCA to establish a regulatory process to promote new technology-based financial services and fintech and ensure consumer protection.
The United Arab Emirates (UAE) and Singapore, in particular, have made progressive strides in creating federal regulatory sandboxes.
The UAE, for example, currently has four different sandboxes: the Abu Dhabi Global Market (ADGM) Regulation Lab, the DSFA Sandbox, the CBUAE FinTech Sandbox, and the DFF Regulation Lab.
Their focus areas include digital banking, blockchain, payment systems, AI, and autonomous transport.
Meanwhile, the Monetary Authority of Singapore (MAS) launched its Fintech Regulatory Sandbox in 2016. Three years later, MAS also launched the Sandbox Express, providing firms with a faster option for market testing certain low-risk activities in pre-defined environments.
“The success of regulatory sandboxes in jurisdictions such as the United Kingdom, Singapore, and the United Arab Emirates has highlighted the importance of key attributes: regulatory collaboration, transparent processes, continuous monitoring, and the allocation of dedicated resources. As a result, a growing number of jurisdictions worldwide are looking to replicate the frameworks established by these pioneering countries to strengthen their competitive position in the global fintech landscape,” Talbert said.
Rademacher believes these jurisdictions’ innovations should prompt the United States to accelerate its progress.
For that to happen, the United States must overcome certain hurdles.
Challenges of a Fragmented US Regulatory Landscape
A fragmented network of federal and state agencies overseeing financial services presents a key challenge to establishing a US federal regulatory sandbox.
“Unlike other countries with a single financial authority overseeing the market, the U.S. has multiple agencies—including the SEC, CFTC, and banking regulators—each with different perspectives on how digital assets should be classified and regulated. The lack of inter-agency coordination makes implementing a unified sandbox more complex than in jurisdictions with a single regulatory body,” Rademacher told BeInCrypto.
Yet, in recent years, important SEC and CFTC actors have expressed interest in adopting a more favorable regulatory approach to innovation.
“Even though I tend to be more of a beach than a sandbox type of regulator, sandboxes have proven effective in facilitating innovation in highly regulated sectors. Experience in the UK and elsewhere has shown that sandboxes can help innovators try out their innovations under real-world conditions. A sandbox can provide a viable path for smaller, disruptive firms to enter highly regulated markets to compete with larger incumbent firms,” Peirce said in a statement last May.
However, the full scope of national regulations far exceeds the authority of these two entities.
Congressional and Constitutional Hurdles
Any legislative measure to develop a federal regulatory framework for sandboxes in the United States would have to undergo Congressional approval. Talbert highlighted several potential constitutional dilemmas the promotion of an initiative of this nature may face.
“These dilemmas include issues related to the non-delegation doctrine, which raises concerns about the constitutionality of delegating legislative power; equal protection considerations under the Fifth Amendment’s Due Process Clause; challenges arising from the Supremacy Clause; and implications under the Administrative Procedure Act (APA) and principles of judicial review,” he said.
To address these complexities, Congress must enact clear legal boundaries that ensure a regulatory framework is both predictable and open. Given the current administration’s emphasis on technological innovation, the prospects for creating a sandbox appear positive.
“Given the current composition of Congress, which aligns with the political orientation of the new executive branch, there may be a timely opportunity for regulatory reform. Such reform could facilitate the creation of a cohesive federal regulatory framework and enhance collaboration among federal agencies,” Talbert told BeInCrypto.
However, creating a federal regulatory sandbox is not a one-size-fits-all solution.
Balancing State Autonomy and Federal Regulations
State autonomy is enshrined in the US Constitution. This protection means that, even though a regulatory sandbox may exist at the national level, individual states still have the authority to restrict or prohibit sandboxes within their jurisdictions.
Encouragingly, most US states are already exploring regulatory sandboxes, and the states that have already implemented them represent diverse political viewpoints.
However, other considerations beyond political resistance must also be addressed.
“A federal regulatory sandbox might also face opposition from established financial institutions, including banks, which may perceive potential threats to their existing business models. Furthermore, federal budgetary constraints could impede the government’s capacity to support the development and maintenance of a federal regulatory framework,” Talbert added.
Effective federal regulations will also require a balance between businesses’ concerns and regulators’ responsibilities.
“The two biggest risks are overregulation—imposing excessive restrictions that undermine the sandbox’s purpose—or underregulation, failing to provide meaningful clarity. If the rules are too restrictive, businesses may avoid participation, limiting the sandbox’s effectiveness. If they are too lax, there is a risk of abuse or regulatory arbitrage. A well-executed federal regulatory sandbox should not become a bureaucratic burden but rather a dynamic framework that fosters responsible growth in the digital asset space,” Rademacher told BeInCrypto.
Ultimately, the best approach will require coordination from different governing bodies, industry stakeholders, and bipartisan collaboration.
Fostering Collaboration for a Successful Sandbox
Due to recent strained communication between tech and federal agencies, Rademacher believes fostering a cooperative atmosphere is essential for creating a functional federal sandbox.
“The approach must be collaborative rather than adversarial. Agencies should view the sandbox as an opportunity to refine regulations in real time, working alongside industry participants to develop policies that foster responsible innovation. Involvement from banking regulators and the Treasury Department could also be valuable in ensuring that digital assets are integrated into the broader financial system in a responsible manner,” he said.
Achieving this requires a bipartisan approach to harmonizing regulatory goals and setting clear boundaries. Industry collaboration with lawmakers and regulators is vital to showing how a sandbox can promote responsible innovation while safeguarding consumers.
“Its success will ultimately depend on whether it serves as a bridge between innovation and regulation, rather than an additional layer of complexity,” Rademacher concluded.
Crypto analyst Titan of Crypto has provided a bearish outlook for the Bitcoin price, predicting it could drop below $60,000. This comes amid Donald Trump’s announcement of reciprocal tariffs, which could trigger this price crash.
Bitcoin Price Could Drop Below $60,000 If It Fails To Hold This Level
In an X post, Titan of Crypto warned that the Bitcoin price could drop below $60,000 if it fails to hold above $81,872. He remarked that BTC must hold within this range, stay above the 50-week Exponential Moving Average (EMA), and keep the weekly RSI above key support.
He warned that the flagship crypto could witness a deeper correction if it fails to hold above those levels. His accompanying chart showed that a drop below $60,000 could occur as part of this correction, with Bitcoin touching $58,500.
This bearish outlook for Bitcoin follows US President Donald Trump’s announcement of reciprocal tariffs on all countries. This move could spark this downtrend for BTC, especially as a global trade war heats up. The flagship crypto has already dropped from as high as $88,000 following this announcement and could soon lose the $80,000 range.
In the long term, Titan of Crypto believes the Bitcoin price could still rebound. He highlighted a Falling Wedge pattern, which was forming for the flagship crypto. The analyst remarked that over the next couple of months, the CPI and Core PCE will likely improve as Trueflation data shows inflation cooling off significantly. He then raised the possibility of this setting the stage for a “strong” BTC bounce by May.
Macro fundamentals continue to heavily impact Bitcoin’s price and the broader crypto market. A CoinGape market analysis highlighted the Nonfarm Payrolls (NFP) report and Fed Chair Jerome Powell’s speech as two key macroeconomic events to watch this week.
Bullish Scenario For BTC
Amid this persistent downtrend for the Bitcoin price, analysts are still providing bullish predictions for BTC. Crypto analyst Crypto Caesar stated that his bullish scenario for the BTC price is a rally to $120,000, which will mark a new all-time high (ATH) for the flagship crypto. He suggested that this price level would mark the top for BTC in this cycle.
Meanwhile, crypto analyst Trader Tradigrade asserted that the Bitcoin price is poised for the final surge. He remarked that a surge begins whenever BTC’s RSI breaks the ascending triangle. Interestingly, his accompanying chart showed that Bitcoin could reach as high as $650,000 on this final surge, although this looks likely to happen next year.
