Trump's Former Advisor Urges U.S. Government to Move Beyond Lip Service on Bitcoin

Key Takeaways

• David Bailey, former Trump advisor, believes the U.S. government needs to actively support Bitcoin adoption, not just express approval.
• Bailey highlights the discrepancy between Trump's executive order for a Strategic Bitcoin Reserve and the apparent lack of substantial Bitcoin accumulation by the government.
• He argues that political will and action are crucial to drive Bitcoin's success, even though Bitcoin can ultimately succeed independently.
• The U.S. CLARITY Act is being eyed as a potential step toward providing regulatory clarity for the cryptocurrency industry.

A former cryptocurrency advisor to the Trump administration is calling for more than just supportive words from the U.S. government regarding Bitcoin. David Bailey, now CEO and Chairman of KindlyMD, a Bitcoin treasury company, argues that the U.S. needs to translate its 'liking' of Bitcoin into tangible policies and actions to truly foster its success.

Bailey's remarks, delivered at the Bitcoin Investor Week Conference in New York, underscore a perceived gap between stated support and actual implementation. While former President Trump publicly voiced his approval of Bitcoin and the broader crypto landscape, and even signed an executive order in March 2025 establishing a Strategic Bitcoin Reserve, Bailey suggests that meaningful accumulation of Bitcoin by the government remains elusive.

The question of how much Bitcoin the U.S. government actually holds is a point of contention. Data from Arkham Research indicates a substantial holding of 378,372 Bitcoin, valued at approximately $22.48 billion. However, the source of these holdings is primarily from seizures related to illicit activities, rather than strategic purchases.

The path toward a deliberate Bitcoin accumulation strategy faces hurdles. David Sacks, a White House advisor on AI and crypto, previously indicated that significant Bitcoin purchases would require a 'budget-neutral' approach, avoiding increased taxes or adding to the national debt. This creates a complex challenge for policymakers.

Despite the lack of concrete action, Bailey remains optimistic about Bitcoin's long-term prospects, even without government intervention. He believes that eventually, a government will emerge that understands and supports the rules necessary for Bitcoin to flourish. However, he stresses that political capital and active support are necessary to accelerate Bitcoin's journey to widespread adoption and higher valuations.

Bailey emphasizes the importance of increasing Bitcoin ownership among voters to drive political support for the cryptocurrency. He believes that wider adoption will inevitably lead to policies favorable to Bitcoin's growth and success.

Meanwhile, the crypto community is watching the progress of the U.S. CLARITY Act, which aims to provide much-needed regulatory clarity to the industry. This legislation could significantly impact the future of Bitcoin and other cryptocurrencies in the United States.

Why it matters

The debate surrounding government involvement in Bitcoin highlights the ongoing tension between decentralized digital currencies and centralized regulatory frameworks. Whether the U.S. government actively embraces Bitcoin or remains on the sidelines will have significant implications for the future of the cryptocurrency industry, its adoption rate, and its role in the global financial landscape. The call for concrete action underscores the need for clear policies and regulations to foster innovation and responsible growth in the digital asset space.