Trump Orders 200,000 BTC Reserve, Changing Crypto Policies

• The U.S. now holds 200,000 BTC under Trump’s new executive order reshaping crypto policy.
• Bitcoin will stay in the U.S. reserve with no sales allowed, ensuring market stability.
• The order also creates a Treasury stockpile for more seized digital assets beyond Bitcoin.

President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve, utilizing approximately 200,000 BTC seized in criminal and civil cases. The order mandates that the Bitcoin be retained as a long-term store of wealth, prohibiting its sale. Additionally, a U.S. Digital Asset Stockpile will be created under the Treasury Department to house other confiscated cryptocurrencies. This directive aims to integrate digital assets into U.S. reserves, setting a precedent for federal crypto policies.  

U.S. Government Amasses 200,000 BTC for Strategic Reserve

The executive order immensely interferes with the government’s approach to BTC, positioning it as a strategic asset rather than a liquidated holding. Estimates suggest the U.S. currently holds 200,000 BTC, valued at approximately $18B. By forbidding the sale of these holdings, the directive effectively removes substantial sell-side pressure, potentially stabilizing Bitcoin’s market value.

David Sacks, who is serving in the White House clarified that this reserve will be funded solely through seized Bitcoin, ensuring taxpayers bear no financial burden. Additionally, the order instructs federal departments to conduct a comprehensive audit of government-owned digital assets and strategize non-budgetary acquisitions of additional Bitcoin.

The move has been seen as a breathtaking moment to reinforce U.S. dominance in digital assets, with some comparing it to a “digital Fort Knox.” The shift in federal stance is expected to influence global regulatory policies, which in turn lead other nations to establish similar reserves.

Related: Trump Signs Order for U.S. Strategic Bitcoin Reserve

Concerns Over Additional Cryptocurrencies in the Reserve

The order has garnered attention not just for its Bitcoin focus but also for Trump’s statement on Truth Social, suggesting that the reserve could expand to include Ethereum, XRP, Solana, and Cardano. This remark triggered debates among cryptocurrency supporters, particularly those backing a Bitcoin-only approach.

While Bitcoin’s inclusion in federal reserves has been viewed as a pro-crypto stance, the potential addition of alternative tokens has raised concerns over volatility and regulatory complexities. Investors are now looking to the upcoming White House Crypto Summit, where policymakers are expected to outline the administration’s broader digital asset strategy.

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