The announcement of the creation of the US Strategic Cryptocurrency Reserve by President Donald Trump on 2 March 2025 caused a significant response among investors and financial lawyers alike. The inclusion of such cryptocurrencies as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL) and Cardano (ADA) in the state reserve indicates a fundamental change in the attitude towards digital assets at the level of US public policy.
This decision, however, raises a number of legal issues related to the regulation, legal status, accounting, tax aspects, and monetary impact of cryptocurrencies on the country's financial system.
This article will examine the key legal aspects of this process, as well as its potential impact on the international regulation of crypto-assets.
Prerequisites for creating a crypto reserve
The legalisation and regulation of cryptocurrencies in the United States has been gradual, with a major impetus coming from the Securities and Exchange Commission’s (“SEC”) decision in 2024 to allow large investment funds such as BlackRock, Invesco and Fidelity to trade digital assets. This has contributed to the rapid growth in the value of bitcoin and other cryptocurrencies, as well as increased government regulation in this area.
It is also worth recalling that during his election campaign, Trump became the first US presidential candidate to officially accept cryptocurrency donations. His policy is aimed at supporting innovation in the blockchain industry and reducing regulatory pressure on the cryptocurrency business. Thus, it would seem that the creation of a state crypto reserve is a logical continuation of this strategy.
Trump’s latest statement and his “crypto strategy”
On 2 March 2025, Trump officially confirmed the US intention to create a strategic crypto reserve, calling it “a key element of the country’s financial security in the 21st century”. He stated that cryptocurrencies could no longer be ignored by the government and financial institutions and that the US should lead the industry instead of leaving dominance to other nations such as China or the EU. According to Trump, the crypto reserve will be “the key to America’s financial independence” and will allow the government to control the development of digital assets while ensuring market stability.
This statement confirmed a change in Trump’s stance on cryptocurrencies, as he was previously known for his criticism of any digital assets. His strategy now includes creating a legal framework for integrating cryptocurrencies into the public financial sector, introducing tax incentives for blockchain companies, and supporting mining farms in the US to reduce dependence on foreign crypto resources.
Legal aspects of creating a crypto reserve
The creation of a US state cryptocurrency reserve requires the settlement of a number of legal issues:
- Legal status of cryptocurrencies. Will crypto-assets be recognised as a financial reserve, similar to gold and other assets held by the Federal Reserve?
- Regulation of cryptocurrency accounting. The inclusion of digital assets in the state reserve will require the development of new accounting standards that are in line with international financial reporting standards.
- Ensuring compliance with regulatory requirements. The United States should integrate the new rules into its legal framework to ensure transparency and compliance with anti-money laundering (“AML”) and counter-terrorist financing (“CFT”) regulations.
- Impact on tax legislation. The determination of the tax treatment of state-owned crypto-assets is an important step that may affect the overall tax policy on digital assets in the United States.
Interaction with regulators and international organisations
The regulation of cryptocurrencies at the international level remains quite different and not unified (with the possible exception of the EU countries). In the United States, crypto-asset activities are regulated by various agencies, including the SEC, the Commodity Futures Trading Commission (the “CFTC”), the Treasury Department and the Federal Reserve. The decision to establish a crypto reserve requires coordination between these institutions or even the creation of another specialised institution.
In addition, interaction with international financial organisations such as the International Monetary Fund (the “IMF”) and the Bank for International Settlements (the “BIS”) is required to ensure that the US is in compliance with international financial regulatory standards.
Potential impact on international regulation of crypto-assets
The US decision to create a strategic crypto reserve may have long-term implications for the global financial system, including the legal status of crypto-assets in the international legal environment. Today, the lack of a unified approach to the regulation of digital assets remains a serious challenge, creating legal uncertainty and risks for market participants.
The US announcement of the creation of a crypto reserve may prompt other countries to develop and adopt similar initiatives. This, in turn, will help unify the regulation of cryptocurrency markets and increase their legitimacy in the eyes of international financial institutions.
Possible international implications
- Harmonisation of regulatory standards – the emergence of a state crypto reserve in the US could be a catalyst for the development of international standards for the storage and accounting of digital assets in the public sector. International organisations such as the IMF and the BIS are likely to step up their efforts to develop common rules for the regulation of crypto-assets.
- Impact on Central Bank Digital Currencies (“CBDCs”) – The US government’s crypto reserve could be a driving force for the expanded adoption of central bank digital currencies. Some countries, such as China with the digital yuan, are already actively working on the creation of CBDCs. Recognition of crypto-assets at the level of the US state reserve may encourage other states to accelerate the development of their own digital currencies and integrate them into financial systems.
- Increased international oversight of cryptocurrency transactions – the inclusion of crypto-assets in government reserves may lead to increased global oversight of transactions, in particular with regard to AML and CFT requirements. This may lead to stricter control over the activities of crypto exchanges and other digital asset service providers.
- Creation of new financial mechanisms – the use of cryptocurrencies as part of the state reserve may open up opportunities for the development of new financial products, such as government bonds backed by crypto-assets or new forms of digital assets used for international payments.
- Competition between states for leadership in digital assets – the US recognition of cryptocurrencies as a strategic reserve asset may provoke other countries to develop their own digital asset policies in order not to lose their competitive advantage in the global financial system. This may lead to new legal initiatives aimed at stimulating innovation in blockchain technologies and cryptocurrencies.
- Evolution of monetary policy – the inclusion of cryptocurrencies in the state reserve changes the traditional concept of monetary policy. Central banks may start experimenting with the inclusion of crypto-assets in their money supply management mechanisms, which may affect exchange rate stability and international trade.
Challenges and risks
The creation of the US state crypto reserve is accompanied by a number of potential risks that should be taken into account and may include:
- High volatility of cryptocurrencies, which may pose threats to the financial stability of the state.
- Cybersecurity issues, as crypto-assets may be subject to hacker attacks.
- Legal conflicts between different jurisdictions regarding the regulation of the state use of cryptocurrencies.
- Economic impact on the traditional financial system, including banks and monetary policy.
As conclusions
The creation of the US state crypto reserve is an important step in the development of the digital economy. This decision opens up new opportunities for the financial market, but also requires a clear regulatory framework. The further development of the crypto reserve requires a comprehensive approach that takes into account not only economic benefits but also possible threats. This creates new prospects for businesses and investors, while increasing the need for legal support and strategic planning.
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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
