Following a disappointing press conference by David Sacks, the crypto market plummeted as concrete measures failed to materialize and investors reacted with uncertainty.
The hopes of the crypto community were abruptly dashed on Tuesday: following the eagerly awaited press conference by David Sacks, the White House's crypto advisor, the entire market plummeted. The leading cryptocurrencies were down across the board, led by XRP and Solana with a loss of 5 percent each and Ethereum with a decline of 4 percent.
Sacks announces regulatory clarity - but no immediate action
Although David Sacks, who was appointed crypto czar by the Trump administration, spoke of a "golden era for digital assets", he failed to provide any concrete measures. While the community had hoped for an imminent easing of regulatory uncertainty, Sacks remained vague and referred to ongoing reviews.
"The Trump administration is committed to clear regulation of the crypto industry," said Sacks. The future of stablecoins in particular is a key issue. He referred to Senator Bill Hagerty's recently introduced GENIUS Act, which aims to create clear guidelines for the issuance of stablecoins.
According to Sacks, these regulations could help to secure the dominance of the US dollar in the global financial system. Last year alone, stablecoins worth 27.6 trillion US dollars were used for transactions - an indication of their growing importance.
Bitcoin as a strategic reserve? White House examines idea
Another hotly debated topic: could the US government include Bitcoin as part of its strategic reserve? Sacks confirmed that the administration is looking into this possibility, but emphasized that it is at an early concept stage.
"We're evaluating the idea of a Bitcoin reserve - that's one of the first things we're looking at," Sacks explained. At the same time, he made it clear that a sovereign Bitcoin fund must be considered separately from the idea of a sovereign wealth fund.
Market reacts with selling - investors worried
The uncertainty about concrete measures by the US government immediately led to a broad sell-off on the market. In the last few hours, all of the top 20 cryptocurrencies have recorded losses.
Crypto investors had hoped that the new administration would quickly take measures to remove regulatory uncertainties and stabilize the market. However, the lack of immediate action caused frustration and selling pressure.
What happens next?
The coming weeks are likely to be decisive for the future of crypto regulation in the US. Whether the market can recover from this setback will depend heavily on how quickly and clearly the Trump administration concretizes its plans.
Author: Pascal Grunow, wallstreetONLINE Editorial team
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