The government's role in crypto, if it should have one at all, is really twofold.
First, to ensure a sufficient legal framework for the industry's growth and development (to prevent issues like debanking), and second, to incentivize the natural growth of the open marketplace that reflects its core potential.
The strategic reserve was a great opportunity to achieve this but missed the mark by not leveraging it for the broader interests of the USA.
The reserve should have a strict entry criteria: either the crypto must be sufficiently decentralized, or it must further US interests in energy, technology, and the digital future. This high bar would help eliminate projects that use money and longevity as signals of legitimacy, two common misconceptions by people who are not operating directly in the space about projects within it.
Bitcoin meets both criteria. It is sufficiently decentralized and has the potential to contribute to innovations in energy storage and redistribution within a new power grid. This aligns it with both current and future US interests.
By setting a high bar in this way, the government would create incentives for builders to develop sufficiently decentralized, public good-oriented platforms that qualify for the reserve, allowing the US people to benefit from owning foundational elements of the next generation of the digital landscape.
Perhaps adjustments can be made over time to better align the interests of both the industry and the US people.
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