Bitcoin strategic reserves in difficulty? The Democratic Party is currently "surrounding" Trump's new encryption policy.

Opposition is pouring out, will the new crypto policy be "difficult to produce"? (Synopsis: Don't be discouraged!) After the governor of Arizona vetoed the bitcoin reserve bill, there are 2 key proposals approved today) (Background supplement: US stablecoin legislation urgent" Democratic Party brakes: GENIUS law has loopholes, crypto-friendly policies become Trump's self-fattening tools) On May 1, 2025, Elizabeth Warren, the senior Democrat on the U.S. Senate Banking Committee, and five colleagues sent a joint letter to Treasury Secretary Janet Yellen, The harsh wording states that the Trump administration's plan to include crypto assets in the National Strategic Reserve "could pose a systemic threat to the stability of the U.S. financial system." The 12-page letter not only lists risks such as cryptocurrency price fluctuations and regulatory arbitrage, but also publicly questions the interests of the Trump family and the crypto industry for the first time - World Liberty Financial (WLFI), as a crypto company controlled by the Trump family, its stablecoin USD1 was recently exposed to reach a $2 billion investment agreement with the Abu Dhabi government-backed venture capital MGX, and the list of shareholders disclosed on WLFI's official website Members of the Trump family hold an impressive 42% shareholding. This is not the first time that Democrats have attacked Trump's encryption policies. As early as April 29, Maxine Waters, the top Democrat on the House Financial Services Committee, successfully blocked the Republican-led joint hearing on the Crypto Market Structure Act on the grounds of "conflict of interest". In a letter to Committee Chair Hill, she bluntly stated: "When the Trump family gains hundreds of millions of dollars by issuing Meme Coin (TRUMP) and investing in DeFi projects, any bill that attempts to deregulate will become a money laundering tool." The "genetic confrontation" of bipartisan crypto policies Democratic Party: from "financial security" to "political reckoning" Elizabeth Warren, as a "crypto hawk" within the Democratic Party, dates back to 2017. At the time, she led the drafting of the Cryptocurrency Act, which sought to bring 90% of crypto assets under the scope of securities regulation, requiring exchanges to register with the SEC and disclose user information. This claim was further escalated in a 2025 joint letter, in which she proposed limiting the size of cryptocurrency reserves to 0.5% of federal assets and mandating that reserve assets must be held in the form of compliant stablecoins such as USDC. Stephanie Murphy, the Democratic leader of the House Financial Services Committee, focused on "national security." At an April 30 congressional hearing, she presented FBI investigative data: Money laundering transactions via cryptocurrencies increased by 370% year-on-year in 2024, with 62% involving Russian oligarchs and Middle Eastern terrorist organizations. "When the Trump family makes crypto deals with sovereign funds in the Middle East, we must be wary of whether this poses a new geopolitical risk." Murphy emphasized. As the core infrastructure of the crypto ecosystem, stablecoins have become the focus of the recent bipartisan game. The Republican-led GENIUS Act sought to establish a federal regulatory framework for stablecoin issuance, but Democrats suddenly defected on May 4, with nine Democratic senators signing a petition against the existing version, calling for enhanced anti-money laundering and foreign issuer scrutiny. This shift directly led to a sharp drop in the probability of the bill passing the Senate to 37%. Republican Party: From "freedom to innovate" to "strategic layout" In stark contrast to the Democratic Party, the Trump administration is systematically promoting the "strategization" of crypto assets. The executive order, signed on January 24, establishes a digital asset working group led by AI and crypto commissioner and "crypto czar" David Sacks, requiring reports containing the stablecoin regulatory framework, national crypto reserve standards, and more within 180 days. On March 6, Trump went a step further and signed an executive order, announcing that 200,000 bitcoins (about $18 billion) held by the federal government would be included in the national strategic reserve, and that XRP, SOL and other assets would be included in the reserve system. Behind this policy shift is the Republican Party's far-reaching layout for "digital dollar hegemony". Analysis by strategy consulting firm Rhodium Group pointed out that Trump's new crypto policy attempts to migrate the settlement function of the US dollar from the traditional banking system to the blockchain through the "stablecoin + on-chain asset" model, thereby avoiding the impact of geopolitical friction on the status of the US dollar. Trump's crypto policy movements directly affect market sentiment. On March 2, when the White House announced the exploration of the possibility of crypto asset reserves, the price of Bitcoin surged 12% in 24 hours, breaking the $95,000 mark. However, this optimism did not last, and after the Democrats' joint letter was exposed on April 29, the price of bitcoin plummeted by 8% in a single day, losing more than $200 billion in market value. On-chain data shows that WLFI sold a total of 128,000 ETH (about $350 million) between March 1 and April 30, which highly coincided with the peak of market sell-off. The turbulent "crypto empire" Eric Trump (Eric Trump), as the operator of the family's crypto business, his personal wealth has been deeply tied to the crypto industry. In addition to serving as a World Liberty Financial ambassador, he also works as a consultant for Japanese crypto giant Metaplanet and American Bitcoin, a US bitcoin mining company, with a combined annual salary of more than $20 million. This interest link has caused strong dissatisfaction among the Democratic Party, and Warren bluntly stated in a joint letter: "When Eric Trump promotes Dubai Crypto Tower at the Token2049 summit, he is essentially using the political capital of the president's family for financial harvesting." Accountable.US, a center-left watchdog organization in the United States, called the Trump coin ranking plan "the most naked presidential corruption and enrichment plan in American history" and believed that it would open the door for wealthy donors to access the president of the United States and enrich the Trump family. According to OpenSecrets, the crypto industry donated more than $120 million to federal political candidates in 2024, 78% of which went to the Republican Party. Top companies such as Coinbase have donated $35 million to the Trump campaign through PACs (political action committees) in exchange for policy support. This "money politics" has heightened the vigilance of Democrats, with Rep. Brad Sherman presenting evidence at the hearing: WLFI's investors include Saudi sovereign wealth funds and Russian oligarchs, which may be laundered through crypto trading. Silicon Valley's tech giants and Wall Street "old money" are split in this game. BlackRock CEO Larry Fink has publicly backed Trump's crypto reserve plan, saying that "Bitcoin is digital gold against fiscal deficits." Peter Schiff, a well-known economist and famous gold bull, insisted that "US stock index futures and the dollar both sold off." But gold and bitcoin are once again in diametrically opposed directions. Gold watches are now up about 1% like safe-haven assets. And than...