Bitcoin conference organizer on Trump's call for U.S. strategic Bitcoin reserve

President Donald Trump's proposal to create a strategic bitcoin reserve has stirred excitement and debate, capturing the attention of industry leaders.

Roundtable anchor Rob Nelson chatted with David Bailey, the mastermind behind the largest Bitcoin conference and CEO of BTC Inc., to explore the implications of such a move, discussing its potential impact on the Federal Reserve, Treasury, and broader financial system.

"Trump's idea of a strategic bitcoin reserve brings incredible value," said Rob Nelson. "It provides a new way of managing value and opportunity, even if bitcoin doesn't entirely take over." However, he criticized Federal Reserve Chair Jerome Powell's move to answer questions about that proposed plan from the Fed's point of view. Bitcoin's price sold off after a reporter asked about Trump's plan and Powell noted the Fed was not asking for any sort of embrace of Bitcoin.

Bailey emphasized that establishing a bitcoin reserve falls under the Treasury's jurisdiction, not the Federal Reserve's. "The president has full authority via executive order to create a digital Fort Knox," Bailey explained. "This could be a significant component of the U.S. Treasury's strategy to reclaim financial power from the Federal Reserve."

Analysts have disagreed over the likelihood of a U.S. Bitcoin reserve getting green-lit this year, but everyone agrees it would trigger a massive surge in bitcoin's price. Fundstrat's Sean Farrell predicts it would send Bitcoin to $500,000 .

When asked about Powell’s stance, Nelson questioned the motivation behind his skepticism toward bitcoin. "Is Powell trying to tank the price, or does he genuinely dislike bitcoin?" he speculated. Bailey suggested that Powell's reluctance stems from frustration. "Imagine managing the global monetary system, and people only want to talk about bitcoin. That’s bound to irritate him," Bailey noted.

Bailey also highlighted a subtle acknowledgment from Powell. "He called bitcoin 'digital gold,' which is a significant endorsement. If every nation owns physical gold, why shouldn't they own digital gold for the digital age?" he argued, emphasizing the importance of integrating bitcoin into national reserves.

As the conversation around bitcoin's role in government finance intensifies, Trump’s proposal may spark broader policy discussions. Whether through the Treasury or elsewhere, the concept of a strategic bitcoin reserve could redefine how nations manage value in the digital era.