Learn Live ICYMI: Crypto goes national — new gold rush, or regulatory experiment?

Recently, the US government announced the establishment of a national Bitcoin reserve of $17 billion. While some believe this is a turning point in Bitcoin history, others believe this move will only benefit big crypto holders.

In this 22nd episode of our Learn 101 livestream, we uncover Crypto goes national — new gold rush or regulatory experiment?

Our series Learn Live ICYMI provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Mar 20, 2025, were two distinguished guests: DustyBC, Crypto KOL, and Shunyet Jan, Head of Derivatives Business and Institutional Sales at Bybit. Under the moderation of Sabrina Chua, Crypto Evangelist and SEO Editor at Bybit, this episode explores Crypto Goes National — New Gold Rush or Regulatory Experiment?

Key Takeaways:

• The recent announcement of a US crypto strategic reserve wasn’t met with as much market movement as expected, but it has had significant impacts on the markets and investment decisions.

• Because cryptocurrency can so easily be converted to fiat money, it’s a solid store of value that can also easily be used to make purchases anywhere.

• The news of a planned strategic reserve may increase institutional investments, which could have a stabilizing effect on crypto price volatility.

US crypto reserve — a bullish catalyst, or just talk?

Investor and content creator DustyBC points out that the volatility of the crypto market exposes all taxpayers to a certain degree of risk. In his view, it may be wiser for the government to hold crypto in its reserves, rather than actively trade it. For individual investors, the key decision lies in whether to take profits now or continue holding — as each path carries its own set of risks.

Following the announcement of the planned crypto reserve, there was an initial market rally, but the excitement quickly tapered off. According to Shunyet Jan, the overall market response was underwhelming, partly because the reserve would be built using seized assets. He notes that this reserve is unlike traditional reserves, such as for oil or food. While Bitcoin might resemble a digital version of a gold reserve, Jan believes its price is more closely tied to the tech sector than to gold. Still, Bitcoin tends to be more stable than most other cryptocurrencies.

DustyBC emphasizes that one of the main risks of a Bitcoin reserve is its price volatility, which could affect public trust. A sharp price drop, for instance, could undermine confidence. However, Jan adds that while some governments have previously banned gold ownership, such restrictions aren’t possible with Bitcoin, due to its decentralized nature.

Jan also believes that nations with more crypto-friendly regulations are more likely to adopt Bitcoin earlier on a national scale. That said, he doesn't think it’s necessary to use Bitcoin in a formal national reserve, since crypto can easily be converted into fiat when needed.

DustyBC points out recent developments in Pakistan, which is becoming more crypto-friendly. He notes that while countries generally don’t want to be the first or last to adopt crypto, it may not matter much in the long run — as long as people can spend and convert it freely, national adoption becomes less critical.

BTC, ETH, SOL, XRP & ADA – the ‘chosen ones,’ or just a coincidence?

The conversation around a crypto reserve isn’t limited to Bitcoin. Other major cryptocurrencies, such as ETH, SOL, XRP and ADA are also part of the discussion. According to DustyBC, the selection process for these assets happened behind closed doors, making it unclear whether there were any incentives or political motivations behind the choices. He speculates that past lawsuits or ongoing regulatory negotiations may have influenced the decision-making.

Jan highlights that Bitcoin is already widely being used as collateral in both crypto-native and traditional financial systems. He points to Bitcoin ETFs as a clear example, describing them as an old-school real-world asset (RWA) structure now applied to crypto. He also notes that many users on Bybit already post BTC as collateral when trading. Thanks to solutions such as Wrapped Bitcoin (WBTC), even traditional finance platforms can accept BTC as collateral — further embedding it into established financial infrastructure. 

In Jan’s view, Bitcoin isn’t just aspiring to become part of the mainstream — it’s already there, functioning like digital gold and fitting seamlessly into familiar financial tools.

As for why altcoins weren’t included in the initial strategic reserve announcement, DustyBC believes this was a prudent decision — governments likely need more time to understand the inner workings and use cases of each altcoin. Still, he expects altcoins will eventually be incorporated into any such reserve. One practical reason Bitcoin was chosen first, he adds, is that the government already holds a significant amount of it from previous seizures, whereas acquiring altcoins would require fiat conversions.

DustyBC supports the government's current selection of cryptocurrencies for the reserve, acknowledging that each asset chosen brings unique benefits. However, he also cautions that adding more cryptocurrencies introduces additional risk. Importantly, he emphasizes that the US won’t be the only player in this space. Other countries may opt to build their reserves with different cryptocurrencies, which could influence global market dynamics in significant ways.

The crypto reserve playbook — how should you trade this news?

Although the market didn’t react as strongly as expected to the announcement of a US crypto strategic reserve, Shunyet Jan believes the news is still highly significant, and, moving forward, should be on every investor’s radar. One way to manage risk while staying engaged in the market, he suggests, is through the use of derivatives.

DustyBC expects further instability before Bitcoin’s price begins to settle. He’s uncertain whether the traditional four-year cycle will hold in light of this new development, which could signal a gradual shift toward less volatility over time.

While Jan doesn’t foresee a major market rally from the news of the reserve alone, he does anticipate increased institutional participation. Since institutions typically trade less frequently than retail investors, this shift could lead to a more stable market, with reduced price swings.

DustyBC emphasizes that there are no guarantees in crypto. Still, he believes the US-based cryptocurrencies mentioned in the reserve announcement are likely to receive more attention going forward. Additionally, other US-origin cryptos not named may also gain traction as the conversation around regulation and adoption evolves.

Jan remains confident in crypto's long-term potential, but doesn’t claim to know which asset will ultimately lead the charge. His personal strategy involves holding US-based blue chip cryptocurrencies for the long term while actively trading others. He emphasizes that every investor is different, and should make decisions based on their own research and risk tolerance.

Closing thoughts

This Learn 101 livestream session sheds light on a pivotal moment for the crypto industry, when digital assets are no longer just speculative tools, but are entering the realm of national strategy. Whether the planned US crypto reserve becomes a new form of digital gold or remains a bold regulatory experiment, one thing is clear: the game is changing. As governments, institutions and traders navigate this evolving landscape, staying informed and adaptable will be key to making the most of the opportunities — and challenges — ahead.

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