Dragonfly Partners: The Idea of the U.S. Government Directly Purchasing Cryptocurrency May Face Opposition

Odaily Planet Daily reports that in response to "Trump recently signed an executive order requiring an assessment of strategic national digital asset reserves," industry insiders believe this is a historic step for the crypto industry, even though some had anticipated the government would directly order the establishment of a Bitcoin strategic reserve. Rob Hadick, a General Partner at Dragonfly, stated, "In my view, this is the best outcome we could hope for, and it's a good sign that the government is willing to consider this move." However, he pointed out that the idea of the U.S. government directly purchasing cryptocurrencies may face opposition, saying, "Most traditional economic advisors would strongly oppose it... I expect when everything settles down, the outcome may disappoint the market."

Others emphasized the global significance of the proposal. Brandon Potts, a partner at Framework Ventures, stated, "If the government really starts buying cryptocurrencies on the open market, it could create a domino effect, prompting other countries to follow suit— even if they are not entirely confident in the cryptocurrency space—just to remain competitive."

The executive order proposed a six-month assessment period, but some venture capital firms believe the process could be expedited. Revsin from Tribe Capital remarked, "If they want to, they could complete the framework in a few weeks, drawing inspiration from the spirit of rapid execution in the crypto space. We do expect they will continue to build reserves, starting with purchasing crypto assets like Bitcoin and possibly expanding to other digital assets over time."

While the specifics of the plan remain uncertain, venture capitalists noted that the executive order has made one thing clear: Crypto is now a priority for the Trump administration, and the coming months will determine the extent to which the U.S. is willing to embrace digital assets at the national level. (The Block)

Previously, it was reported that President Trump signed an executive order to establish a Presidential Digital Asset Market Working Group to strengthen the U.S. leadership in the digital finance sector. The task of this working group is to develop a federal regulatory framework for managing digital assets (including stablecoins) and to assess the creation of strategic national digital asset reserves.