President Donald Trump established a digital asset working group by signing a much-awaited executive order on January 23. The group will be responsible for creating regulations and evaluating a federal cryptocurrency reserve in an effort to legitimize the asset class in the US. At the same time, the order responds to long-standing calls for softer and clearer regulations from both traditional financial and crypto platforms.

The order makes good on the President's promise to create a strategic national Bitcoin reserve and comes as the Trump family's connections and personal financial interests in the crypto industry deepen. He made the promise at the 2024 Bitcoin conference in Nashville. At the time, he reaffirmed his stance that the US should become the world's crypto capital and superpower, reiterating that China would beat the US to it in the absence of swift measures.

A more supportive regulator

The US Securities and Exchange Commission (SEC) recently revoked guidelines requiring firms holding cryptocurrency on behalf of customers to account for it as a liability. Like many before them, these guidelines harmed the interest of the firms by making it more expensive to hold digital assets.

Before revoking those guidelines, the SEC launched a so-called crypto task force. According to a press release, it has been tasked with developing a reasonable regulatory path that respects legal boundaries. Commissioner Hester Peirce, who was extremely critical of previous SEC chairman Gary Gensler's aggressive approach to cryptocurrency regulation, will lead the task force. She's also a contender for Gensler's spot.

Stacks, a Layer-2 scaling solution for Bitcoin and a decentralized computer network running on cryptographic protocols, is uniquely positioned to leverage regulatory compliance as the first SEC-regulated token. Its token STX is the 67th biggest cryptocurrency by market cap. Notably, Stacks thrived during Gensler's tenure, which not all cryptocurrencies can boast (Ripple was hit hard by the long-running lawsuit).

Hailing from NY, the leading Bitcoin L2 team thanked CoinGecko on X for making a list of the top US-made coins and putting Stacks on it. The coin is 22nd on that list. US-made coins have been getting a lot of attention lately. Donald Trump wants to enact helpful legislation for them to grow. He also wants to eliminate capital gains taxes for investors in these assets. According to a statement from the White House, his executive order is aimed at providing regulatory certainty and clarity based on frameworks that account for emerging technologies, technology-neutral regulations, well-defined jurisdictional regulatory boundaries, and transparent decision-making.

Cryptocurrency exchanges and other organizations have long anticipated clearer and more favorable regulations, so the process is expected to help mainstream Bitcoin and altcoins. As a compliant coin, no fines or extended legal battles can divert Stacks from becoming an even more successful American cryptocurrency.

Stacks inherits Bitcoin's security and trustless nature

Stacks inherits the flagship crypto's superior security as an L2 with a two-way peg, enabling holders to peg in or out of the Bitcoin blockchain. It uses Bitcoin for final settlement. Its wrapped sBTC is among the most secure wrapped Bitcoin products available for trading. Wrapped Rootstock Smart Bitcoin (RBTC) is the only other wrapped product verified and settled on the Bitcoin blockchain.

Stacks inherits Bitcoin's robustness and immutability. It enhances the latter's utility by bringing smart contracts and decentralized applications. Clarity, Stacks' secure, deterministic smart contract language, allows developers to write transparent and predictable applications without risk.

Stacks employs a Proof-of-Transfer (PoX) mechanism, where users lock STX tokens and earn Bitcoin as rewards, creating a direct economic link between Stacks and Bitcoin. The PoX mechanism requires significantly less energy than traditional mining, mitigating concerns about the environmental impact of blockchain technologies.

By enhancing Bitcoin's utility, Stacks broadens its appeal and use cases, making it easier for mainstream users to engage with Bitcoin indirectly. Features like decentralized finance (DeFi), tokenized assets, and Web3 functionalities help position Bitcoin as more than a store of value, attracting a broader audience.

Notable milestones for Stacks

The Stacks ecosystem achieved over 350 million monthly API requests and 40,000 Hiro wallet downloads and deployed 2,500 Clarity smart contracts, establishing itself as a leading Web3 project on Bitcoin in its very first year. It has facilitated the creation of DeFi platforms, such as DEXs and lending protocols, enabling financial services that leverage Bitcoin's security. Approximately 140,000 NFTs have been minted on the platform, showcasing its capability to support diverse assets.

The launch of Grayscale Stacks Trust enabled institutions to purchase the coin easily. It's among the first vehicles allowing investors to gain exposure to the STX token in the form of a security without directly having to deal with buying and storing it. Trust shares are based on STX per share. The product tracks the market value minus fees and other costs.

Facilitating mainstream exposure to a critical resource

Stacks is poised to play a crucial role in mainstream exposure to Bitcoin, which is a critical resource by the definition of strategic reserve: a stock that can be released at times of supply disruptions or crisis. Significant interest in Bitcoin and Stacks is expected from institutions and investors, and the prospects of even broader Bitcoin adoption are optimistic. When it becomes fact, the Strategic Bitcoin Reserve will be one of a few US strategic reserves, the best-known being the Strategic Petroleum Reserve and Strategic National Stockpile of medical supplies.

Donald Trump directed the digital asset working group to assess the prospect of deriving a stockpile from crypto seized by law enforcement. The digital assets seized amount to approximately 200,000 tokens with a market value of about $21 billion.

Specific Bitcoin reserve proposals are currently hard to come by in Washington, with the most concrete one being from Bitcoin holder and Republican Senator Cynthia Lummis. She introduced a bill to create a reserve run by the US Treasury in July 2024. Under this bill, the Treasury would purchase 200,000 bitcoins a year for five years until the supply reached a million. To put that in context, Bitcoin's maximum supply is capped at 21 million. Profit from gold holdings and Federal Reserve bank deposits would fund the Treasury's purchases. Subsequently, the Bitcoin reserve would be maintained for at least two decades. Other proponents of holding a Bitcoin supply argue the cryptocurrency will continue to appreciate, enabling the US to cut its deficit without increasing taxes and strengthening the US dollar.

President Donald Trump established a digital asset working group by signing a much-awaited executive order on January 23. The group will be responsible for creating regulations and evaluating a federal cryptocurrency reserve in an effort to legitimize the asset class in the US. At the same time, the order responds to long-standing calls for softer and clearer regulations from both traditional financial and crypto platforms.

The order makes good on the President's promise to create a strategic national Bitcoin reserve and comes as the Trump family's connections and personal financial interests in the crypto industry deepen. He made the promise at the 2024 Bitcoin conference in Nashville. At the time, he reaffirmed his stance that the US should become the world's crypto capital and superpower, reiterating that China would beat the US to it in the absence of swift measures.

A more supportive regulator

The US Securities and Exchange Commission (SEC) recently revoked guidelines requiring firms holding cryptocurrency on behalf of customers to account for it as a liability. Like many before them, these guidelines harmed the interest of the firms by making it more expensive to hold digital assets.

Before revoking those guidelines, the SEC launched a so-called crypto task force. According to a press release, it has been tasked with developing a reasonable regulatory path that respects legal boundaries. Commissioner Hester Peirce, who was extremely critical of previous SEC chairman Gary Gensler's aggressive approach to cryptocurrency regulation, will lead the task force. She's also a contender for Gensler's spot.

Stacks, a Layer-2 scaling solution for Bitcoin and a decentralized computer network running on cryptographic protocols, is uniquely positioned to leverage regulatory compliance as the first SEC-regulated token. Its token STX is the 67th biggest cryptocurrency by market cap. Notably, Stacks thrived during Gensler's tenure, which not all cryptocurrencies can boast (Ripple was hit hard by the long-running lawsuit).

Hailing from NY, the leading Bitcoin L2 team thanked CoinGecko on X for making a list of the top US-made coins and putting Stacks on it. The coin is 22nd on that list. US-made coins have been getting a lot of attention lately. Donald Trump wants to enact helpful legislation for them to grow. He also wants to eliminate capital gains taxes for investors in these assets. According to a statement from the White House, his executive order is aimed at providing regulatory certainty and clarity based on frameworks that account for emerging technologies, technology-neutral regulations, well-defined jurisdictional regulatory boundaries, and transparent decision-making.

Cryptocurrency exchanges and other organizations have long anticipated clearer and more favorable regulations, so the process is expected to help mainstream Bitcoin and altcoins. As a compliant coin, no fines or extended legal battles can divert Stacks from becoming an even more successful American cryptocurrency.

Stacks inherits Bitcoin's security and trustless nature

Stacks inherits the flagship crypto's superior security as an L2 with a two-way peg, enabling holders to peg in or out of the Bitcoin blockchain. It uses Bitcoin for final settlement. Its wrapped sBTC is among the most secure wrapped Bitcoin products available for trading. Wrapped Rootstock Smart Bitcoin (RBTC) is the only other wrapped product verified and settled on the Bitcoin blockchain.

Stacks inherits Bitcoin's robustness and immutability. It enhances the latter's utility by bringing smart contracts and decentralized applications. Clarity, Stacks' secure, deterministic smart contract language, allows developers to write transparent and predictable applications without risk.

Stacks employs a Proof-of-Transfer (PoX) mechanism, where users lock STX tokens and earn Bitcoin as rewards, creating a direct economic link between Stacks and Bitcoin. The PoX mechanism requires significantly less energy than traditional mining, mitigating concerns about the environmental impact of blockchain technologies.

By enhancing Bitcoin's utility, Stacks broadens its appeal and use cases, making it easier for mainstream users to engage with Bitcoin indirectly. Features like decentralized finance (DeFi), tokenized assets, and Web3 functionalities help position Bitcoin as more than a store of value, attracting a broader audience.

Notable milestones for Stacks

The Stacks ecosystem achieved over 350 million monthly API requests and 40,000 Hiro wallet downloads and deployed 2,500 Clarity smart contracts, establishing itself as a leading Web3 project on Bitcoin in its very first year. It has facilitated the creation of DeFi platforms, such as DEXs and lending protocols, enabling financial services that leverage Bitcoin's security. Approximately 140,000 NFTs have been minted on the platform, showcasing its capability to support diverse assets.

The launch of Grayscale Stacks Trust enabled institutions to purchase the coin easily. It's among the first vehicles allowing investors to gain exposure to the STX token in the form of a security without directly having to deal with buying and storing it. Trust shares are based on STX per share. The product tracks the market value minus fees and other costs.

Facilitating mainstream exposure to a critical resource

Stacks is poised to play a crucial role in mainstream exposure to Bitcoin, which is a critical resource by the definition of strategic reserve: a stock that can be released at times of supply disruptions or crisis. Significant interest in Bitcoin and Stacks is expected from institutions and investors, and the prospects of even broader Bitcoin adoption are optimistic. When it becomes fact, the Strategic Bitcoin Reserve will be one of a few US strategic reserves, the best-known being the Strategic Petroleum Reserve and Strategic National Stockpile of medical supplies.

Donald Trump directed the digital asset working group to assess the prospect of deriving a stockpile from crypto seized by law enforcement. The digital assets seized amount to approximately 200,000 tokens with a market value of about $21 billion.

Specific Bitcoin reserve proposals are currently hard to come by in Washington, with the most concrete one being from Bitcoin holder and Republican Senator Cynthia Lummis. She introduced a bill to create a reserve run by the US Treasury in July 2024. Under this bill, the Treasury would purchase 200,000 bitcoins a year for five years until the supply reached a million. To put that in context, Bitcoin's maximum supply is capped at 21 million. Profit from gold holdings and Federal Reserve bank deposits would fund the Treasury's purchases. Subsequently, the Bitcoin reserve would be maintained for at least two decades. Other proponents of holding a Bitcoin supply argue the cryptocurrency will continue to appreciate, enabling the US to cut its deficit without increasing taxes and strengthening the US dollar.