Bitcoin Reserve is Not Enough to Make America the Crypto Capital, Says Jake Chervinsky

Jake Chervinsky, Chief Legal Officer at Variant and a prominent pro-crypto advocate, has responded to Trump’s executive order of March 6, 2025, which establishes a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile. In an X-post, he applauds the move, but warns: this alone does not make the U.S. the “crypto capital of the world.” What is still missing according to him?

The Order and Chervinsky’s Criticism

The executive order, announced by David Sacks and explained by Scott Bessent, starts the reserve with 200,000 seized BTC ($17.9B at $89,652.30) and a stockpile of forfeited altcoins (ETH, XRP, SOL, ADA?), without new purchases unless “budget-neutral.” Chervinsky praises this: “A BTC reserve and digital asset stockpile are great.” But he adds: “Neither of these is sufficient on its own.”

For him, “crypto capital” does not mean owning the most crypto wealth, but leading in innovation, jobs, influence, and economic activity. “The government needs to support businesses, not just assets,” he says. The reserve is symbolically strong – a “digital Fort Knox” – but without a policy that unleashes entrepreneurs, the U.S. lags behind.

What is missing?

Chervinsky advocates for “clear and sustainable rules”:

1. Stablecoin legislation: A framework to regulate dollar-pegged tokens, such as Tether’s USDT ($142B market cap).
2. Market structure legislation: Rules for exchanges and trading, à la MiCA in the EU.
3. Securities safe harbor: Protection for token issuance, so startups can launch without SEC fear (think Ripple’s XRP battle).
4. Bank access: Stop “debanking” (Operation Choke Point 2.0), so crypto companies can hold accounts.
5. Developer protection: Immunity for non-custodial software makers (e.g., wallet developers) against liability.

“Entrepreneurs need to be able to build with certainty, without rules flipping with new leadership,” he says. The SEC’s recent leniency (dropping cases against Coinbase, Kraken) and the summit are steps, but too fragmented.

Netherlands as Crypto Capital

According to a new study by LegalBison, a law firm specializing in crypto licenses, the Netherlands is the most crypto-obsessed country in the world. With 5,593 monthly searches per 100,000 inhabitants for terms like “Bitcoin,” “Dogecoin,” and “Cryptocurrency,” the Netherlands leaves the competition far behind. Perhaps the United States can learn something from our small frog country?

Outlook

The reserve is a start – 200K BTC legitimizes, as Bitwise’s Rasmussen says: “Fear of prohibition is zero.” But Chervinsky’s five priorities are crucial for dominance. The summit can tease legislation – stablecoins and bank access are achievable – but without Congress, it remains limited. A real “capital” status requires more than a reserve. Trump’s EO is a foundation, not a finish line!