David Bailey, former crypto advisor to the Trump administration, has publicly criticized the U.S. government's lack of substantive action on Bitcoin adoption, despite vocal support. Speaking at the Bitcoin Investor Week Conference in New York, Bailey stated, "At the end of the day, liking Bitcoin is not enough." He emphasized that the Trump administration was a "very important first step" but argued that significant progress requires actual delivery, not just talk.
Bailey specifically pointed to the stalled Strategic Bitcoin Reserve plan. An executive order for the reserve was signed by former President Trump in March 2025, but the government has yet to begin accumulating Bitcoin outside of seized funds. "We’re sitting here a year later, the Strategic Bitcoin Reserve was signed into an executive order," Bailey noted, adding that the exact holdings remain unclear. Data from Arkham Research indicates the U.S. currently holds 378,372 BTC, valued at approximately $22.48 billion.
The path to accumulation has faced hurdles. In May 2025, White House AI and crypto czar David Sacks indicated purchases would need to be "budget-neutral," without raising taxes or adding to the national debt. While some, like Galaxy Digital's Alex Thorn, remained optimistic about a 2025 implementation, Bailey stressed that political capital must be invested to mobilize government machinery.
Concurrently, President Trump has urged Congress to pass a comprehensive crypto market structure bill "ASAP," accusing large banks of stalling progress. His push aims to break a legislative stalemate centered on whether crypto firms should be allowed to offer "stablecoin yield." This feature has become a key point of contention, dividing stakeholders and slowing negotiations on the broader market structure package, which seeks to establish clearer oversight, consumer protections, and rules for bank involvement with crypto firms.
Industry leaders like Coinbase CEO Brian Armstrong have warned against versions of the bill that curb stablecoin yield, calling them a "giveaway to the banks" and stating he would prefer no bill over one that strips out innovation. The Federal Deposit Insurance Corporation (FDIC) is also reexamining guidance that discouraged banks from servicing crypto firms, a shift that could influence how insured institutions participate in stablecoin-related services post-legislation.
Despite governmental inaction, Bailey remains bullish on Bitcoin's long-term success, stating it will succeed "whether it’s four years from now, or 10 years from now, or 20 years from now." Bitcoin is currently trading around $68,220, approximately 45% below its October all-time high of $126,000.
