The impact of the White House encryption summit: market turmoil, regulation, and BTC reserve dreams

March 7, 2025 will be a historic day for the encryption currency world. Under the leadership of President Donald Trump, the White House will host the first encryption currency summit, bringing together industry leaders, CEOs, founders of blockchain companies, top investors, and US policymakers. Trump will deliver the opening speech, marking not only a shift in the US government's attitude towards digital assets but also a potential turning point for the global encryption currency market. Topics of discussion will include regulation, stablecoin governance, and ambitions for BTC strategic reserves. Market participants are beginning to ponder: what does this mean for the future of encryption currencies, both in the short and long term? More importantly, will the encryption currency reserves truly become a reality?
Short-term fluctuations: market sentiment and volatility
One consistent point in the financial sector is that the market likes certainty and dislikes surprises. The announcement of the White House encryption summit on March 3, 2025, has triggered a surge of optimism, with BTC approaching historical highs, while encryption ETFs such as iSharesBTC Trust IBIT and Fidelity Wise OriginBTC Fund FBTC rising by 7% in a few hours. However, this euphoria may be a double-edged sword.
In the short term, the encryption market may experience high volatility before and after the summit. Investors have high hopes for Trump's remarks, and his exaggerated rhetoric and empty promises may fuel speculation. If the summit releases more friendly regulatory signals or takes concrete actions to support BTC, we may see BTC break through $120,000, and alternative coins such as Ethereum or Solana will also rise significantly. Conversely, if the outcome is just empty promises without a clear plan, the market may quickly adjust. I recall the volatility of the stock market after the 2008 financial crisis: when expectations are disappointed, emotions may instantly reverse.
Stablecoins, as one of the main agendas, will also receive attention. Figures like Jeremy Allaire, the founder of Circle, the issuer of USDC, believe that stablecoins based on the US Dollar should be regulated by the US, which may lead to changes in market dynamics. In the best case scenario, approval of the stablecoin regulatory framework may enhance confidence among institutional investors and drive new funds into this field. However, if the regulations are too stringent, small market participants may be eliminated, leading to painful consolidation.
Long-term impact: legalization of encryption and the dominant position of the United States
A deep understanding, this conference has the potential to permanently change the pattern of the encryption currency industry, especially if the United States succeeds in positioning itself as the gravitational center of this industry. For years, I have witnessed how the blurred regulations in the United States have driven blockchain companies to shift to other jurisdictions such as Singapore, Switzerland, or Dubai. However, with Trump's promise to make the United States the "encryption world capital," this conference may become a catalyst for a paradigm shift.
Clearer and friendlier regulation could open the doors for major banks and Wall Street institutions to dive deeper into the world of encryption currencies by revising SEC regulations or abolishing guidelines such as Accounting Bulletin 121. Imagine Goldman Sachs or JPMorgan offering comprehensive custody services, or even their own stablecoin. This is not a fantasy; it's the logical continuation initiated by the launch of BTC and Ethereum ETFs in 2024.
On the other hand, focusing on stablecoins can strengthen the dominance of the US dollar in the digital economy. If the G7 summit establishes a legal framework requiring global stablecoin issuers to register in the United States, as advocated by David Sacks Crypto and AI Czar at the White House (, then blockchain-based digital dollars will become an unparalleled geopolitical weapon. This will be a significant blow to countries like China, which are actively promoting digital renminbi.
However, there are significant risks in the long run. If regulation becomes too centralized or cumbersome, the innovation at the core of decentralized encryption and financial freedom may be eroded. I am concerned that we will see a 'tamed' encryption world where only large companies can survive, and small experimental projects will gradually disappear.
BTC Reserve: Dream or Reality?
Now, let's talk about the most inspiring topic: the strategic reserve of Bitcoin. Since his 2024 campaign, Trump has been promoting this idea, claiming that the United States should accumulate BTC like the gold of Fort Knox. On March 2, 2025, he announced that this reserve would include BTC, Ethereum, XRP, Solana, and Cardano, which immediately triggered an 8% market surge. But will this really become a reality?
As someone who has witnessed the symbol of economic power become the US gold reserve, I see an interesting analogy. BTC has a limited supply of 21 million coins, making it attractive as 'digital gold.' If the US were to start buying BTC in large quantities, such as the proposed purchase of 1 million BTC by Senator Cynthia Lummis, the impact would be enormous. Prices could skyrocket to $200,000 or higher within a few months, and other countries would have to follow suit to maintain their economic competitiveness.
However, there are numerous obstacles. First, where does the funding come from? Selling the Fed's gold reserves, as suggested by Loomis, would spark intense debate in Congress. Second, the volatility of BTC remains a problem. Imagine if the US bought at the market peak, only for the price to plummet 30% overnight, resulting in billions of dollars in losses and creating a terrible political PR. Third, this could trigger a global race for encryption reserves, with countries like China or Russia hoarding their digital assets, exacerbating geopolitical tensions.
However, I will not ignore the possibility. If the summit produces an executive order directing the Treasury to gradually begin accumulating around 50,000 BTC annually, with solid regulatory support, the BTC reserve may become a reality in this decade. This would be a bold move that would put the United States at the forefront of the financial revolution.
Ending: Turning point or just a gimmick?
The White House encryption summit on March 7, 2025 is not just a ceremonial event. In the short term, this will cause fluctuations and expectations in the market. In the long run, this may lay the foundation for the legitimacy of encryption currencies and the dominance of the United States in the digital economy. As for the BTC reserve? This is a huge gamble - a dream that can change the world, or a hollow promise that may become empty over time.
As a senior Wall Street professional, I have learned one thing: the market cares about actions, not words. The actual outcome of this summit will determine whether Trump's remarks signal the beginning of a new era or are just another scene in the drama of encryption currencies. One thing is certain: this week, global financial attention will focus on Washington, and like you, I can't wait to see what will happen.
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