President Donald Trump has approved the much-anticipated US Strategic Bitcoin Reserve. The reserve will consist of Bitcoins seized by the government, and will not purchase any more BTC.
White House cryptocurrency advisor David Sacks, who revealed details about the Bitcoin reserve, stated that the reserve will be funded by Bitcoins seized by the government through criminal or civil asset forfeiture and therefore will not impose any additional cost on taxpayers.
While the US aims to grow the Bitcoin held in reserves by acquiring more BTC through budget-neutral means, Trump also ordered Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to investigate how the country can finance additional Bitcoin purchases without costing taxpayers a dime.
So what does the executive order signed by Trump mean for XRP and other altcoins? Trump announced last Sunday that XRP, Solana (SOL) and Cardano (ADA) would also be part of the reserve.
But the executive order Trump signed hours ago only includes Bitcoin. According to experts, the executive order creates a strategic reserve for Bitcoin (BTC), which will be the primary digital asset of the US government, while also creating a broader digital asset stockpile that includes XRP and other altcoins.
As with the Bitcoin reserve, the U.S. government will create its digital asset stock, which will consist of XRP and other altcoins, using assets “seized in criminal or legal proceedings.”
Accordingly, the US government only has Ethereum (ETH) in its possession of the four altcoins that Trump announced would be in the reserve over the weekend.
The US government also holds more than $120 million worth of stablecoins and over $200 million worth of altcoins.
At this point, experts state that although the US does not currently have XRP, Solana or Cardano, it can convert the stablecoins and other altcoins it has into XRP, SOL and ADA and allocate them to digital stock.
What Does It Mean For The Crypto Market?
The decision not to sell confiscated cryptocurrencies, especially Bitcoin, is seen as a positive step for the crypto market, along with the creation of a digital asset reserve and stock.
According to analysts, this could reduce potential selling pressure on Bitcoin and altcoins and help stabilize prices. As a result, this situation is interpreted as bullish, especially for Bitcoin and other altcoins held in government stock.
This is just a guess, and time will tell how the reserve plan will affect BTC and altcoin prices.
*This is not investment advice.
