Trump administration eyes more Bitcoin

A White House official has confirmed the Trump administration’s intention to acquire "as much Bitcoin as possible", reinforcing its commitment to making the U.S. a leader in digital asset strategy.

Speaking at a Bitcoin Policy Institute event, Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, described the government’s approach as open-ended, comparing it to asking how many dollars someone would want. A White House representative later clarified that any Bitcoin acquisitions would be budget neutral, meaning no direct taxpayer funds would be used.

The administration’s stance aligns with Senator Cynthia Lummis’ Bitcoin Act, a bill that would require the U.S. government to purchase up to one million BTC, worth approximately $80 billion. The legislation proposes funding these purchases by revaluing gold reserves, unlocking billions in unrealized gains without affecting the federal budget.

The U.S. government already holds around 200,000 BTC, seized through criminal and civil forfeitures. While no new purchases have been confirmed, the White House’s growing interest in Bitcoin reserves marks a significant policy shift from previous administrations.

Binance CEO praises US Bitcoin reserve

Binance CEO Richard Teng has praised Trump’s Bitcoin reserve strategy, calling it a “good first step” that will push other governments to consider similar holdings. Speaking at CNBC’s Converge Live, Teng highlighted how the U.S. decision could influence sovereign wealth funds and national treasuries worldwide.

“The messaging is clear: the largest government in the world is now holding Bitcoin as part of a reserve. This will cause many other governments to think through this issue,” Teng said.

His comments echo those of Binance founder Changpeng “CZ” Zhao, who previously called nation-state Bitcoin adoption “inevitable”. Teng pointed to Germany’s decision to sell 50,000 Bitcoin in July 2024 for $2.88 billion, when Bitcoin was trading around $65,000. Just six months later, Bitcoin had climbed to $108,000, meaning Germany missed out on approximately $1.9 billion in potential gains.

Countries including Brazil, Japan, and Russia have already introduced Bitcoin reserve proposals, while South Korean financial experts and politicians recently urged their government to integrate Bitcoin into national reserves. Teng believes these discussions will only intensify as more governments consider Bitcoin’s long-term potential.

Bitcoin’s DeFi potential grows

A new Binance research report highlights the untapped potential of Bitcoin in decentralized finance (DeFi), suggesting it could unlock billions in liquidity and increase Bitcoin’s capital efficiency.

Currently, only about 0.79% of Bitcoin is used within DeFi applications. Binance argues that integrating Bitcoin into DeFi could create new opportunities for lending, borrowing, and yield generation. The report notes that Bitcoin’s original design focused on payments and store-of-value functions, but its integration into DeFi protocols could enhance its financial utility.

Traditionally, DeFi has been dominated by Ethereum and other smart contract platforms. However, with the development of Layer-2 networks like Stacks and Rootstock, more Bitcoin-compatible DeFi applications are emerging. While Bitcoin holders have historically prioritized security and self-custody over active capital deployment, Binance believes this trend may shift as the DeFi space evolves.

Despite the optimism, the report acknowledges that DeFi remains risky, citing hacks and scams that have resulted in significant investor losses. It concludes that if upcoming BTCFi projects succeed, Bitcoin could play a much larger role in the decentralized financial ecosystem.

Three Arrows Capital expands FTX claim

A U.S. bankruptcy court has granted Three Arrows Capital (3AC) permission to expand its claim against FTX to $1.53 billion, rejecting objections from FTX’s debtors.

Judge John T. Dorsey ruled that 3AC’s liquidators had provided sufficient notice of their claim and were hindered in their investigation by FTX’s failure to share records promptly. The court determined that 3AC had put FTX "on notice" regarding the possibility of an expanded claim, dismissing the exchange’s objections.

Once a leading crypto hedge fund with over $3 billion in assets, 3AC collapsed in June 2022 after placing heavily leveraged bets on TerraUSD and other high-risk assets. According to court filings, 3AC had $1.53 billion in assets on FTX, which were liquidated to cover a $1.3 billion debt owed to the exchange.

Initially, 3AC’s liquidators filed a $120 million claim, but new findings about FTX’s mismanagement have led them to pursue a much larger settlement. This ruling could impact creditor payouts in both bankruptcy cases, with potential ripple effects across the crypto industry.

Vermont drops Coinbase case

In a win for Coinbase, Vermont has dropped its legal case against the company’s staking services, signaling another regulatory shift under the Trump administration.

The state cited the SEC’s evolving stance on crypto regulation as a key reason for withdrawing its show cause order, originally issued in June 2023. Vermont’s decision follows the SEC’s recent withdrawal of lawsuits against Binance, Kraken, and OpenSea, suggesting a broader trend toward more industry-friendly regulation.

Coinbase’s Chief Legal Officer, Paul Grewal, welcomed the decision, stating, “As we have always said: staking services are not securities. We applaud Vermont for embracing progress and providing clarity.”

Under former SEC Chair Gary Gensler, staking services were targeted as potential unregistered securities offerings. However, Acting SEC Chair Mark Uyeda has taken a more collaborative approach, forming a crypto task force to create clear regulatory guidelines.

The outcome of this case could set a precedent for other states, shaping the future of staking regulations in the U.S.

Bitcoin ETFs near $100B

Bitcoin remains around $82,000, down from its $109,000 all-time high, yet institutional demand continues to surge.

Multinational holding company Franklin Templeton’s Solana ETF filing is gaining momentum, while Bitcoin ETFs now manage nearly $100 billion in assets, reinforcing growing mainstream adoption.

The evolving regulatory landscape is also reshaping the industry. The U.S. government’s strategic Bitcoin accumulation, combined with Vermont’s regulatory reversal and ongoing ETF developments, highlights crypto’s increasing integration into traditional finance.

As legal battles from 2022’s crypto collapses continue, new policies and institutional involvement are driving a more structured and resilient market.

Final thoughts

Bitcoin’s role in national reserves, institutional finance, and DeFi continues to grow, despite market fluctuations. The Trump administration’s Bitcoin reserve strategy, Binance’s DeFi research, and regulatory shifts point to a more structured, legitimized future for digital assets.

Whether Bitcoin’s price moves up or down, its position in the financial system is stronger than ever. With governments, institutions, and retail investors aligning around digital assets, crypto is no longer an experiment—it’s becoming part of the global economy.