Trump also reportedly established a White House team dedicated to digital asset legislation, aiming for a structured rollout that begins with stablecoin regulation and expands into broader market reform. The budget-neutral plan will be funded through existing Federal Reserve and Treasury resources. Trump Media also confirmed a $2.5 billion capital raise to buy Bitcoin, despite initial denials from the company which slammed a report from the Financial Times. Additionally, Adam Back recently spoke about his long-term bullish thesis, and warned that selling Bitcoin is similar to gambling. Institutional demand continues to rise, which suggests that Bitcoin may increasingly become a core financial reserve for both governments and corporations. Bitcoin Act Gains Momentum At the Bitcoin 2025 conference in Las Vegas, Senator Cynthia Lummis announced that President Donald Trump is officially backing the BITCOIN Act. This is a legislative proposal to have the US government acquire one million Bitcoin over the next five years. According to Lummis, Trump not only supports the bill but has also established a team in the White House to actively work on comprehensive digital asset legislation. The acquisitions outlined in the bill will be funded using existing resources from the Federal Reserve and the Treasury Department to ensure that there is no additional tax burden on American citizens. This “budget-neutral” approach was previously pointed out by the Trump administration as a cornerstone of their digital asset strategy. Senator Lummis talked about the administration’s commitment to a structured rollout of digital asset legislation, beginning with stablecoins, followed by broader market structure reforms and the establishment of a national Bitcoin reserve. She said that the stablecoin bill has already passed through the Senate Banking Committee and is likely to be brought to the Senate floor for a vote shortly after the current congressional recess ends. Lummis also mentioned the bipartisan cooperation involved in advancing the bill, as well as the extensive negotiations with minority party lawmakers to ensure cross-party support. The momentum behind stablecoin legislation was further reinforced by David Sacks, Trump’s top crypto adviser, who recently stated that the GENIUS Act is poised to pass the Senate with bipartisan backing. The bill cleared a key procedural vote on May 19,and is viewed as the most comprehensive attempt yet to regulate dollar-pegged stablecoins at the federal level. (Source: US Senate ) Industry experts believe regulation like this could help boost the global role of the US dollar by leveraging blockchain-based assets. Currently, stablecoins such as Tether’s USDT and Circle’s USDC make up over 85% of the $250 billion stablecoin market. Trump Media Confirms $2.5B Bitcoin Bet Trump’s support of crypto also became evident after Trump Media and Technology Group (TMTG), the parent company of Truth Social and partially owned by President Donald Trump, confirmed a $2.5 billion capital raise to buy Bitcoin. In a May 27 announcement , TMTG shared details about the funding structure, which includes a $1.5 billion stock sale and $1 billion in convertible senior secured bonds with a 0% coupon. The transaction is expected to close by May 29. Announcement from Trump Media CEO Devin Nunes explained that the decision reflects the company’s belief in Bitcoin as a powerful symbol of financial freedom. Nunes added that holding Bitcoin will help the company guard against what he described as harassment and discrimination by financial institutions. The confirmation came a day after a Financial Times report suggested the deal was in motion, which TMTG initially dismissed with sharp criticism of the publication and its sources. Despite the strategic move into digital assets, TMTG’s stock dropped more than 12% after the announcement was made, which caused it to trade at approximately $23.60 at the time of writing. The investment is part of a trend of corporations adopting Bitcoin as a treasury asset. In May alone, several companies boosted their Bitcoin holdings. Michael Saylor’s Strategy acquired 4,020 BTC on May 26. Similarly, tech firm Semler Scientific disclosed a purchase of 455 BTC valued at over $50 million, while Japanese investment firm MetaPlanet acquired 1,004 BTC earlier in the month. Market analyst Jesse Myers recently pointed out the growing pace of institutional accumulation, and predicted that major entities could control half of all Bitcoin by 2045 if current trends continue. Myers argued that this surge in adoption stems from a wider exodus out of fiat-based financial instruments, as capital increasingly flows into hard assets like Bitcoin and gold. Adam Back Says Selling Bitcoin Is a Losing Bet The fact that Trump seems intent on holding on to the US government’s Bitcoin as well Trump Media’s stockpile may be a good thing. Adam Back, the CEO of Blockstream and one of Bitcoin’s earliest pioneers, believes that selling Bitcoin is similar to “playing in a really bad house-rate casino.” In a recent interview with Bitcoin financial services firm Unchained, Back explained that the odds are heavily skewed against those trying to time the market. His insights stem from his early experience in the Bitcoin space, when the asset’s price was climbing exponentially despite extreme volatility. He believes that trying to sell during dips, hoping for a better re-entry, is generally a losing game because the long-term trajectory consistently trended upwards. Back’s comments shed some light on a key tension for Bitcoin investors: navigating the asset’s notorious volatility while still staying focused on the larger exponential trend. Bitcoin has undergone several severe corrections throughout its history, and often fell more than 80% during bear markets. Yet, those who held on have seen impressive gains. Over the past decade, Bitcoin delivered a staggering total return of more than 39,000%, which lends some credibility to Back’s point about the risk of mistiming exits. Average Bitcoin returns (Source: Curvo ) Despite concerns about diminishing returns as Bitcoin matures, Back argued that the current cycle could defy that theory. He pointed to growing interest from both corporations and governments as potential drivers of sustained upward momentum. Firms like Strategy continue to accumulate Bitcoin, sometimes through innovative financial instruments like convertible notes. This approach offers both direct and indirect exposure to the asset. Institutional and sovereign entities are also making strategic moves. Abu Dhabi, for example, made headlines with a $408.5 million investment in BlackRock’s Bitcoin ETF. Meanwhile, the political landscape is shifting in favor of Bitcoin as well. President Donald Trump recently signed an executive order to establish a federal Bitcoin reserve, and New Hampshire and Texas have taken similar steps at the state level. Back believes these kinds of developments point toward broader adoption and potentially another phase of exponential growth, albeit still marked by periods of high volatility.
