The United States Advances Bitcoin Reserve and Stablecoin Legislation, Opening a New Era of Encryption Regulation

On March 7, 2025, the U.S. government signed the landmark "Bitcoin Strategic Reserve Act." This act incorporates 200,000 Bitcoins (approximately 6% of the circulating supply) into the national permanent no-sale reserve, pioneering supply-side reform in the Bitcoin market. This "zero-cost accumulation" mechanism cleverly avoids fiscal controversies, and its profound significance lies in: by institutionalizing property rights, integrating Bitcoin into the national financial infrastructure, laying the foundation for monetary sovereignty competition in the digital age.

At the White House cryptocurrency summit held the next day, the government announced the acceleration of the legislative process for the "Stablecoin Accountability Act", marking the official entry of the U.S. cryptocurrency regulatory system into a new phase of comprehensive restructuring.

Bitcoin Strategic Reserve Act: Opening the "National-Level Lockup" Era

On March 7, the U.S. cryptocurrency regulatory policy made a breakthrough. The government officially signed the "Bitcoin Strategic Reserve Act," designating 200,000 Bitcoins accumulated by the judicial department as national strategic reserve assets and establishing a permanent sales prohibition mechanism. Although the act did not directly increase the government's Bitcoin purchasing scale, it achieved a "national-level lock-up" by freezing nearly 6% of the circulating Bitcoin supply, fundamentally reshaping the market supply and demand structure. In the long term, the act reinforces Bitcoin's "digital gold" attribute through institutional confirmation of rights, forming policy synergy with Texas's pioneering "Bitcoin Tax Acceptance Act," marking a critical transformation of the U.S. cryptocurrency regulatory paradigm.

The bill innovatively adopts a "zero-cost increase" mechanism, allowing for the continuous expansion of reserve size through compliant judicial procedures, thus avoiding the political controversies of traditional fiscal expenditures while reserving operational space for subsequent policy adjustments. It is noteworthy that Texas is simultaneously advancing the "Bitcoin tax deduction bill," demonstrating the state government's intention to compete for the discourse power of the encryption economy through institutional innovation. This regulatory linkage between the federal and state governments is driving the rapid establishment of the world's first multi-level regulatory system for crypto assets in the United States, laying the foundation for establishing a global compliance center for encryption.

The market's reaction to the bill has shown volatility. Initially, due to the U.S. government's lack of direct purchases of Bitcoin, some investors viewed it as bearish, leading to a spike and subsequent retreat in Bitcoin prices. Subsequently, the market began to recognize the long-term benefits, and Bitcoin prices rebounded sharply, reaching a price of $91,000. In fact, when the government announced that it would treat Bitcoin as a national strategic reserve, the market had already reacted to this positive news, and in the future, other countries around the world will need to follow suit.

The implementation of the United States' Bitcoin strategic reserve policy may trigger a global chain reaction. If other major economies follow suit and establish cryptocurrency strategic reserves, according to the theory of supply and demand elasticity models, this structural change will provide Bitcoin with at least 2-3 orders of magnitude of value reassessment space, fundamentally reshaping the global cryptocurrency asset valuation system.

In-depth analysis reveals that the profound impact of this bill lies in the competition for financial discourse power behind strategic reserve policies. Historical experience shows that the United States successfully gained control over the pricing dominance of global commodities by establishing strategic petroleum and gold reserves. The current trend of "American-style regulatory framework export" in the Bitcoin market is essentially an extension of the competition for currency sovereignty in the digital age. For other countries, the decision to establish a strategic reserve of encryption assets has transcended mere economic decision-making and evolved into a strategic choice for national financial security in the digital economy era, which must be taken seriously.

Stablecoin Legislation and Integration with Banking Systems: Shifting from "Speculation Driven" to "Technology Empowered"

The implementation of the Bitcoin strategic reserve policy has brought significant volatility to the market. Although the content of the White House cryptocurrency summit on March 8 was rather ordinary, the government has clearly advanced the legislative timetable for the Stablecoin Accountability Act to be completed before the August congressional recess, presenting major industry opportunities for the integration of stablecoin legislation and the banking system.

The government believes that the key to ending the "bank exclusion" phenomenon in cryptocurrencies lies in establishing a federal-level regulatory framework, particularly focusing on standardizing the reserve requirements for stablecoin issuance and the qualification criteria for institutions. This legislative process has been extended by four months compared to the Senate's initial "100-day legislative" plan. According to the legislative framework disclosed by the Treasury, the new bill will establish a dual regulatory structure of "federal charter + state license," requiring issuers to maintain 100% USD reserves and connect to a real-time auditing system. This design not only incorporates the regulatory practices of the New York State Department of Financial Services (NYDFS) but also achieves standardization through the Federal Reserve's federal review mechanism.

Licensed institutions are reshaping the power structure of the encryption market. The spot trading volume of compliant trading platforms surged from 42% in 2024 to 79% in the second quarter of 2025. The average weekly net inflow of 4.7 billion USD is 12 times that of unlicensed platforms, and this stark gap is particularly evident in a well-known stablecoin, whose 99.1% reserve compliance rate supports a daily trading volume of 500 billion USD, accounting for 68% of global crypto payments. When the clearing system launched by a certain exchange in collaboration with multiple international banks demonstrates an 80% increase in efficiency and a 60% decrease in costs, the technological moat of licensed players has become clear.

The technological revolution of the banking system has become a new engine for industry growth. The time for cross-border payments has been compressed from 10-60 minutes with traditional blockchain to under 3 seconds, and the settlement failure rate has dropped from 2.3% to 0.07%. These transformations are derived from the integration of the Federal Reserve's real-time settlement system. The report from the Bank for International Settlements points out that the automated KYC system has reduced the cost of single customer authentication from $120 to $48, directly driving a major bank's compliance wallet to acquire 1.5 million new users in three months, with 63% being first-time users of encryption assets. This leap in efficiency is reshaping the behavior patterns of market participants, with the proportion of long-tail users whose daily trading volume is below $100 rising from 12% to 29%.

The macroeconomic weight of crypto assets enters a phase of qualitative change. The International Monetary Fund's estimation model shows that for every 10% growth in cryptocurrency market value, the marginal contribution to US GDP is 0.2 percentage points, a figure that holds strategic value against the backdrop of a $38 trillion fiscal deficit. A major asset management giant has detected a strong correlation between the 25% increase in Bitcoin volatility and changes in the Federal Reserve's balance sheet, revealing that the crypto market has become a new medium for the transmission of dollar liquidity. Deutsche Bank's forecast further quantifies this trend, predicting that by 2027, crypto assets will handle 35% of global payment clearing volume and attain legal tender status in 17 major economies. When technological empowerment resonates with regulatory frameworks, the ultimate outcome of this transformation will be the digital reconstruction of the global financial order.

The Restructuring of the Macroeconomy and Its Link to the Encryption Market: The Ups and Downs Still Require Attention to the US Economy

Despite the overall positive situation mentioned above, it does not mean that the encryption market can continue to rise, as the correlation between the encryption market and the US stock market is deepening. The government's fiscal expansion policies and the Federal Reserve's monetary policy game are reshaping the pricing logic of cryptocurrencies. The most intuitive manifestation is that since the approval of the Bitcoin ETF, the correlation between Bitcoin prices and the US stock market has become more significant. Data shows that the 30-day rolling correlation coefficient between Bitcoin and the S&P 500 index rose from 0.35 in 2023 to 0.78 in the second quarter of 2025. Therefore, the fluctuations of the encryption market are now inseparable from the US stock market and even the US economy.

The Federal Reserve is caught in a policy dilemma between "controlling inflation" and "fighting recession." The current U.S. economy is facing the most typical stagflation crisis since the 1970s, with a combination of "high inflation + low growth" putting the Federal Reserve in a difficult position: if it continues to raise interest rates to suppress inflation, the interest costs of the $35 trillion in existing debt will consume 17% of federal revenue; if it shifts to lowering interest rates to stimulate the economy, it may repeat the vicious inflation cycle of 1980. Historically, in similar stagflation environments, the median three-month volatility of Bitcoin reached 86%.

The turbulence of the US economy may lead to a contraction in the liquidity vigilance of the capital markets. In a normal market environment, a contraction in liquidity would trigger arbitrage funds to enter and balance supply and demand. However, during times of chaotic policy expectations, this self-regulating mechanism may fail: traders, unable to predict the Federal Reserve's reaction function, tend to hold their coins and wait rather than actively market make. When liquidity providers (such as market makers) collectively reduce their exposure, the market may fall into a "liquidity black hole"—price declines prompt more capital withdrawals, creating a vicious cycle.

Industry Outlook in the Global Landscape

The current policy shift in the United States is triggering a global paradigm shift in regulation. The digital asset sovereign reserve model established by the "Bitcoin Strategic Reserve Act" and the banking integration path defined by the "Stablecoin Accountability Act" provide a replicable regulatory framework sample for the world. As G20 countries successively introduce cryptocurrency regulatory details, the global market is evolving from the "regulatory arbitrage" stage to the "institutional competition" stage.

In the new era where the digital economy intertwines with geopolitical factors, the reconstruction of cryptocurrency regulatory frameworks has transcended mere technical specifications, evolving into an important dimension of national financial competitiveness. The current policy practices in the United States indicate that whoever can first establish a regulatory system that balances innovation inclusivity with risk prevention will be able to occupy a strategic high ground in the global competition of the digital economy. For global economies that are in a critical period of digital transformation, this regulatory paradigm shift is both a challenge and a historical opportunity to reshape the international financial order.

However, the revolutionary developments in the encryption market led by the United States have made the current volatility of the encryption market closely related to the U.S. economy. While paying attention to the U.S. economy to observe the encryption market, we need to call on countries around the world to actively participate in the regulatory framework of the encryption market to avoid the United States forming a monopoly over it.