The US government moves toward a national Bitcoin reserve, potentially reshaping crypto policy and market dynamics.
Trump Approves Strategic Bitcoin Reserve
US President Donald Trump has signed an executive order establishing a “Strategic Bitcoin Reserve” on March 7, during the White House Crypto Summit. The reserve is expected to expand US crypto holdings beyond seized assets, marking a major shift in government policy toward digital currencies.
SCOOP: Sources tell me the @WhiteHouse is preparing a further clarification of its so-called Strategic Crypto Reserve either later today or tomorrow. My guess is it will address the funding mechanism, ie the potential roadblock for buying digital coins w taxpayer money (they…
Government’s Expanding Crypto Strategy
According to Bloomberg, the executive order could lead to the government actively purchasing Bitcoin instead of merely holding seized crypto from criminal cases. Discussions are also ongoing about halting the auction of confiscated digital assets and using them to fund a national crypto stockpile.
Potential Tax and Regulatory Reforms
Beyond acquiring Bitcoin, the administration is considering additional executive actions, including changes to crypto tax policies. However, any adjustments requiring congressional approval could face significant hurdles.
White House Plans for Funding the Reserve
Fox Business correspondent Charles Gasparino reported that the White House is expected to clarify the funding mechanism soon. While direct taxpayer funding would require congressional approval, alternative solutions—such as utilizing seized crypto assets or forming a sovereign wealth fund—are under consideration.
Trump’s Vision for a Multi-Asset Crypto Reserve
On March 2, Trump announced on Truth Social that the reserve would include multiple cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). He later emphasized that BTC and ETH would form the core of the reserve.
US Government’s Current Crypto Holdings
The US government currently holds approximately $18.28 billion in seized crypto, with 198,109 BTC worth $17.87 billion comprising the majority. If the government ceases selling these assets and instead integrates them into the reserve, it could significantly impact the crypto market.
Implications for the Crypto Industry
The establishment of a national Bitcoin reserve signals growing institutional recognition of digital assets. If successfully implemented, the initiative could set a precedent for other nations, further legitimizing crypto as a strategic financial asset.
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