Crypto Czar David Sacks Outlines Plan to Establish U.S. Crypto Dominance

Earlier today, US crypto Czar David Sacks, hosted a press conference in which he and other Senate members discussed the United States’ upcoming strategy to position itself as a global leader in the digital asset space.

Other key participants at the event included Senate Banking Committee Chairman Tim Scott, Senate Agriculture Committee Chairman John Boozman and House Agriculture Committee Chairman Glenn ‘G.T’ Thompson.

Let’s dive into the key points discussed in the presser.

Key Points Discussed

The address centered around several key points of discussion.

It is widely acknowledged that the United States SEC took a heavy-handed approach to the burgeoning digital asset sector—leaving many would-be American innovators abroad.

Sacks acknowledged the lack of regulatory clarity for the sector, noting that the punitive measures taken by the SEC had stifled the American digital asset industry.

Sacks said, “We’re coming off, frankly four years of arbitrary prosecution and persecution of crypto companies.”

To address this, a clear regulatory framework is being developed.

This will have the two-fold benefit of ensuring consumers are protected while helping to establish the United States as the home of digital asset innovation. Bringing digital asset innovation back onshore will have the additional benefit of reducing the challenge of weeding out the bad actors in the space.

“We want to keep that innovation onshore in the U.S., financial assets are destined to become digital, just like every analog industry has become digital, and we want that value creation to happen in the United States, rather than giving it away to other countries," said Sacks.

“This is a positive signal for the market. Indeed, since the initial announcement of David Sacks’ press conference yesterday, the CMC Crypto Fear & Greed Index has risen from 39 (Fear) to 45 (Neutral) within the past 24 hours,” said Alice Liu, Head of Research at CMC.

Chairman Thompson said the goal is to pass it through the Senate within 100 days, but not before educating Senate members on the particulars of the industry.

Thompson remarked that there’s a “global race to build the new economy,” which will be centered around Internet 3.0; the internet of value.

Senate Banking Committee Chairman Tim Scott said that his first priority will be to push clear stablecoin regulations through the Senate. This will likely be based on the GENIUS (Guiding and Establishing National Innovation in U.S. Stablecoins) Senator Bill Hagerty recently introduced in the Senate.

This stablecoin bill will help ensure that the U.S. dollar remains the dominant world currency, a key focus of today’s discussion.

In response to a question, the feasibility of a bitcoin reserve is being studied, but Sacks was not in a position to discuss the possibility of a sovereign wealth fund.

In response to a journalist’s question, David Sacks provided an update about the establishment of a national Bitcoin reserve, stating:

"As soon as we get all that set up [...] we're still in the very early stages of this [...] one of the first things we're going to look at is the feasibility of a Bitcoin reserve,” said Sacks.

“There was some disappointment that BTC as a reserve asset wasn’t mentioned. If stablecoin regulation comes first, BTC’s reserve asset status might take longer than people had hoped, potentially dragging out the timeline for the next bull market,” said Alice.

Market Response

Both during and after the conference, disgruntled spectators took to social media to label the talk a “nothing burger”—with many commenters arguing that nothing new was gleaned from the event.

Many were expecting developments on the introduction of a strategic Bitcoin reserve or updates on the recently established Digital Asset Markets (Working Group), which is tasked with assessing the feasibility of establishing a national digital asset stockpile.

“The overall takeaway is still neutral towards positive. A clear regulatory stance on stablecoins is a step forward, and while BTC reserve status may take longer, this shift in policy could set the stage for broader crypto adoption in the U.S.,” said Alice.

Since then, BTC and the broader cryptocurrency market were sent tumbling, with over $36 million in longs liquidated in the last hour alone. BTC is now hovering around the $98,000 price point—down 3.1% in a day.

“This has increased BTC volatility to 59 and pushed total liquidations to over $450 million in the past 24 hours,” said Alice.