U.S. Bitcoin Holdings Face Sharp Losses as Global Crypto Regulation Accelerates

The U.S. governments strategic Bitcoin reserve has recorded significant paper losses following the latest downturn in the crypto market, underscoring the volatility risks tied to sovereign exposure to digital assets.

Key takeaways:

• The U.S. strategic Bitcoin reserve has lost nearly $5 billion since inception
• Bitcoin has fallen roughly 45% from its all-time high
• The reserve was initially valued at about $18.5 billion
• The decline comes amid a broader crypto market correction and heightened policy focus

Since its creation last year, the reserve has lost close to $5 billion in value as Bitcoin slid sharply from its peak.

According to information shared by Walter Bloomberg, the reserve‘s losses closely track Bitcoin’s price decline, which has erased a substantial portion of gains accumulated during the prior rally. The drop has reignited debate over whether highly volatile digital assets should be held on a government balance sheet, particularly during periods of macroeconomic and political uncertainty.

While proponents argue that Bitcoin exposure should be evaluated on a long-term horizon, critics point to the scale and speed of the drawdown as evidence that timing, transparency, and risk management remain unresolved issues in sovereign crypto strategies.

Regulatory momentum builds in the United States

Despite recent market weakness, regulatory developments in Washington suggest a more supportive framework for digital assets may be nearing completion. The Chair of the U.S. Securities and Exchange Commission announced live on CNBC that the long-anticipated Crypto Market Structure Bill is on the verge of passing.

CRYPTO LEADERS TO ADVANCE DIGITAL ASSET BILL.

SEC Chairman Paul Atkins is officially shifting the agency away from “regulation by enforcement.”

According to the SEC Chair, the House of Representatives has already adopted the bill, and the Senate is now moving it through the legislative process. He described the effort as approaching the “finish line,” signaling that clearer rules for crypto markets could soon be in place.

U.S. officials and industry participants argue that regulatory clarity could unlock substantial institutional capital. Market participants increasingly view assets such as Bitcoin, Ethereum, and XRP as potential beneficiaries once a formal market structure framework is enacted.

Vietnam moves toward taxing crypto like stocks

At the same time, international policy developments highlight a growing trend toward tighter oversight rather than outright bans. Vietnams Ministry of Finance has proposed a draft tax framework that would treat cryptocurrencies similarly to stocks.

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Vietnams Finance Ministry has proposed a tax plan treating crypto like stocks.

Under the draft, every crypto transfer through a licensed platform could be taxed at 0.1% of the transaction value.

Under the proposal, each crypto transfer conducted through a licensed platform would be subject to a 0.1% tax on transaction value. In addition, companies generating revenue from crypto transfer services would face a 20% corporate tax on profits.

Vietnamese officials have framed the proposal as an effort to formalize crypto activity, improve tax collection, and bring digital assets under clearer regulatory supervision, rather than restricting usage outright.

A split global landscape

Together, these developments reflect a diverging global approach to crypto policy. While the U.S. appears to be moving toward regulatory clarity designed to encourage institutional participation, other jurisdictions are focusing on taxation and fiscal integration.

For markets, the contrast is striking: government-held Bitcoin reserves are experiencing short-term losses, even as legislative and regulatory momentum suggests digital assets are becoming more deeply embedded in the global financial system. Whether recent price declines prove temporary or structural may ultimately depend less on market sentiment—and more on how these regulatory paths unfold.

Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.