HIVE Digital CEO Frank Holmes says U.S. crypto regulation needs AI

HIVE Digital CEO Frank Holmes says U.S. crypto regulation needs AI originally appeared on TheStreet.

In an interview with TheStreet Roundtable, HIVE Digital Technologies Chairman Frank Holmes weighed in on the SEC’s Crypto Task Force Roundtable, where Chair Paul Atkins emphasized moving from enforcement to formal rulemaking for crypto issuance, custody and trading.

Holmes predicts artificial intelligence will be at the heart of those new guidelines — and he also assessed how a non-sellable treasury Bitcoin reserve might reshape markets.

AI-driven rulemaking

Holmes argued that AI and next-generation data processing will enable regulators to draft clear, comprehensive crypto rules. “I think the US government today is much more using AI and the ability with the new Nvidia chips to take huge amounts of data and also come out and create rules and regulations,” he said.

He pointed to jurisdictions such as Dubai and Bermuda, where AI-assisted frameworks have already taken hold, as models for U.S. authorities. Those “little islands,” Holmes noted, “function extremely well, they’ve had for several years now a crypto ecosystem that has regulations and rules.”

Formalizing ground rules, he said, will help manage “spectacular growth” and move beyond the current patchwork approach.

Holmes recalled a board meeting in Paris where “there were nine thousand people there spending a thousand dollars a ticket at the Louvre learning all about all these new meme coins. I didn’t know most of them. I was just so impressed.”

That level of enthusiasm, he maintained, underscores why comprehensive AI-driven rulemaking is essential: “Some basic ground rules and regulations really will be helpful to see it flourish and prosper.”

Strategic Bitcoin reserve

Turning to the March executive order directing the Treasury to build a non-sellable reserve of over 200,000 Bitcoin, Holmes said even partial execution could “ignite Bitcoin — the confidence in the overall system.”

He noted that a government-backed Bitcoin holding would improve price discovery, deepen market liquidity and reinforce investor trust.

Addressing proposals to sell gold to fund the reserve, Holmes pushed back: “That’s like saying sell all my Andy Warhol art and I’m only going to go buy Brainwash. I’m not going to do that. I’ll have both.”

He explained that revaluing gold to market prices would alter key balance-sheet metrics and argued that pairing gold with Bitcoin “makes it the most powerful currency in the world.”

Holmes’s insights point to a potential inflection point: AI-powered rulemaking could bring long-awaited clarity to U.S. crypto regulation, while a strategic Bitcoin reserve may redefine price discovery, liquidity and confidence across digital assets.

Story ContinuesHIVE Digital CEO Frank Holmes says U.S. crypto regulation needs AI first appeared on TheStreet on Jun 10, 2025

This story was originally reported by TheStreet on Jun 10, 2025, where it first appeared.

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