Bitwise’s Head of Alpha Strategies: Now Is Not the Time for a U.S. Strategic Bitcoin Reserve

As discussions around a U.S. Strategic Bitcoin Reserve (SBR) gain traction, Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, has voiced skepticism about its immediate feasibility. In a recent interview on the Archie Podcast, Park expressed cautious optimism about Bitcoin’s long-term potential but warned that the timing for a national Bitcoin reserve is not yet right. Citing geopolitical, demographic, and legislative challenges, Park outlined why the U.S. and its allies may not be ready to embrace such a policy, despite growing enthusiasm in some political circles.

Why Now Is Not the Right Time for a U.S. Strategic Bitcoin Reserve

Park’s reservations about a U.S. SBR center on three key factors.

Firstly, he argues that adopting Bitcoin as a strategic reserve could accelerate the decline of the U.S. dollar’s status as the global reserve currency. “The first reason is that the U.S. embracing Bitcoin at this time would accelerate the decline of the dollar. The U.S. is not yet prepared for this shift, though it may eventually conclude that a reset of the monetary order is necessary,” Park said during the podcast. He emphasized that the U.S. remains heavily invested in maintaining dollar dominance, and a premature move toward Bitcoin could destabilize its financial influence.

Secondly, Park highlighted the geopolitical constraints of such a policy. He noted that nations closely aligned with the U.S., such as Japan or South Korea, are unlikely to establish Bitcoin reserves due to their reliance on the dollar-based financial system. “If you are a direct U.S. ally, purchasing Bitcoin would offend U.S. interests at the highest level, as it would essentially constitute a rejection of the dollar,” he explained. In contrast, countries with fewer ties to the U.S. financial system, such as Russia or China, might be more inclined to take the risk, as they face less diplomatic fallout.

Finally, Park pointed to demographic and political factors. Countries with younger populations and pro-crypto political leadership are more likely to embrace Bitcoin reserves, as younger demographics tend to view cryptocurrencies favorably. In contrast, nations like Japan, with aging populations, lack the political momentum to prioritize crypto-friendly policies.

Trump’s Executive Order: A Symbolic Gesture?

In March, President Donald Trump signed an executive order to establish a U.S. SBR, directing the retention of Bitcoin seized through law enforcement actions. While some in the crypto community hailed the move as a step toward legitimizing Bitcoin, Park downplayed its significance. “The executive order signals little because it does not represent the will of the people,” he said. “In my opinion, the Executive Strategic Reserve is effectively meaningless, as it only prohibits selling the Bitcoin the government already holds.”

Unlike legislation, which would require broader congressional approval and signal a lasting commitment, an executive order lacks permanence. Park argued that a true SBR would need to involve active Bitcoin accumulation, supported by a legislative framework and international coordination. Without these, the current SBR is driven more by political optics than substantive policy.

The Need for Global Coordination

Park stressed that a viable SBR would require careful coordination with U.S. allies to avoid disrupting the international monetary order. If the U.S. acts unilaterally, its allies like Japan, who rely on U.S. assets, feel blindsided. Park envisioned a multilateral approach where the U.S. consults and potentially collaborates with allies to establish a collective Bitcoin reserve framework. Such cooperation, he argued, would lend legitimacy to the initiative and mitigate risks to global financial stability.

Recent discussions at Bitcoin 2025 in Las Vegas, where figures like David Sacks expressed enthusiasm for a U.S. SBR, highlight the growing political interest in Bitcoin. However, Park cautioned that such rhetoric often serves populist rather than reflecting actionable policy. “Any of these individuals can say whatever they wish,” Park said, suggesting a gap between such statements and actual policy implementation.

Bitcoin’s Role in a Dollar-Dominant World

Park acknowledged Bitcoin’s potential as a hedge against inflation and a store of value. However, he emphasized that integrating Bitcoin into the U.S. financial system would require innovative approaches, such as dollar-pegged stablecoins. “If Bitcoin is integrated with the dollar somehow,” he said, “then thoughtful conversations could arise.”

Despite his reservations, Park remains optimistic about Bitcoin’s long-term prospects. However, he warned that public officials face unique challenges in supporting Bitcoin. “As a public official, you do not profit when Bitcoin’s value rises, yet you face significant criticism when it declines,” he explained,“ As a public official, you cannot privatize gains, but you must fully bear both the national and personal consequences of losses, including reputational damage. Most smart people will not step into such a situation.”

Looking Ahead

As of May 29, Bitcoin is trading at approximately $108,000, near its all-time high, driven by bullish sentiment and institutional inflows. However, Park’s cautious stance contrasts with these bullish projections, emphasizing the need for strategic timing over speculative enthusiasm.

Park concluded by urging investors to seize opportunities before nation-states fully enter the Bitcoin market. “It’ll be so seismic the day the US decides to include bitcoin on its balance sheet. You will know the world has changed the next day when you wake up. And it's not what you felt in January,” he said. “My hope is that more people will accumulate Bitcoin across the world at a sovereign level of the individual. They can then benefit once sovereigns opt in. The cost basis matters.” For now, Park believes the U.S. should focus on laying the groundwork for a coordinated, legislatively backed SBR rather than rushing into symbolic measures.