The relationship between Washington and Wall Street’s favorite digital asset has entered a frustrating “talking phase.” Despite campaign promises and high-profile executive orders, industry leaders are starting to demand more than just friendly rhetoric. David Bailey, a former crypto advisor to the Trump administration and current CEO of KindlyMD, recently voiced what many in the sector are feeling: simply “liking” Bitcoin isn’t a policy—it’s a platitude.
Speaking at the Bitcoin Investor Week Conference in New York, Bailey argued that while the current administration took a historic first step by acknowledging the industry, the follow-through has been sluggish. The transition from “pro-crypto candidate” to “pro-crypto delivery” is where the real friction lies.
The Stalled Promise of the Strategic Bitcoin Reserve
The centerpiece of the industry’s frustration is the Strategic Bitcoin Reserve. While President Trump signed an executive order for the reserve in March 2025, the actual accumulation of Bitcoin has remained stagnant. Currently, the U.S. government’s holdings consist almost entirely of “seized” assets—coins recovered from illicit activities—rather than a proactive, state-sanctioned investment strategy.
According to Arkham Research, the U.S. currently holds roughly 378,372 BTC (valued at approximately $22.48 billion). However, Bailey pointed out a glaring lack of transparency, noting that the government itself seems unsure of its exact holdings. The hurdle isn’t just a lack of will; it’s a lack of “budget-neutral” funding. Crypto czar David Sacks has emphasized that the government is looking for ways to buy Bitcoin without increasing the national debt or raising taxes—a needle that has proven difficult to thread.
Political Capital vs. Passive Support
Bailey’s core argument is that Bitcoin’s path to a $1 million valuation requires more than a thumbs-up from the Oval Office. It requires the expenditure of “political capital”—the willingness of leaders to fight through legislative red tape and mobilize the various “gears” of government to create a conducive environment.
“Just because you like Bitcoin doesn’t mean that you’ve invested the political capital necessary for things to happen,” Bailey remarked. He suggested that without this active mobilization, the outcome for the industry remains the same regardless of the President’s personal opinion.
Despite the current legislative bottleneck, there is a sense of “inevitability” among proponents. The strategy now focuses on two fronts:
-
The CLARITY Act: Legislation aimed at providing the market structure and regulatory certainty the industry desperately needs.
-
Voter Adoption: Bailey believes that as more Americans own Bitcoin, it becomes a political necessity for the government to support it. If the voter base is “orange-pilled,” the policy will eventually follow the people.
Bitcoin is currently trading around $68,220, significantly lower than its October peak of $126,000. For Bailey and other executives, this dip is a reminder that while Bitcoin will likely succeed on its own over the next 10 to 20 years, the speed of that success depends entirely on whether the U.S. government decides to lead or simply watch from the sidelines.
