Trump Establishes U.S. Crypto Reserve to Secure Digital Assets.
President Donald Trump has enacted an executive order to create a strategic reserve for Bitcoin, positioning the United States among the select few nations globally to establish a national stockpile of blockchain assets.
According to David Sacks, the White House's AI and cryptocurrency advisor, the reserve will contain cryptocurrencies that have been forfeited to the federal government through criminal or civil actions.
Sacks further stated that the United States will not liquidate any Bitcoin held in the reserve, opting instead to retain it as a valuable asset.
Trump - who just four years ago said Bitcoin "seems like a scam" - now says he plans to make the US "the Crypto Capital of the World".
Additional information is anticipated as the president prepares to host the inaugural cryptocurrency summit at the White House on Friday. It remains uncertain whether the proposed reserve may encounter legal challenges or if it will necessitate congressional approval.
Sacks described the stockpile as "a digital Fort Knox for the cryptocurrency," likening it to a military facility in Kentucky that houses a substantial portion of the United States' gold reserves.
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Additionally, Trump's directive establishes a digital assets stockpile for cryptocurrencies beyond Bitcoin that have been seized.
It mandates a comprehensive assessment of the federal government's cryptocurrency holdings, which Sacks estimates to include approximately 200,000 Bitcoin, valued at $17.5 billion (£13.6 billion) based on current market rates.
The potential advantages of the new stockpile for American citizens remain uncertain; however, Sacks asserted that it "will not cost taxpayers a dime."
His suggestion that the US government would refrain from purchasing Bitcoin contributed to a decline of over 5% in the price of the leading cryptocurrency.
Certain nations maintain strategic reserves of national assets to diversify governmental investments and mitigate financial risks.
The United States maintains a strategic petroleum reserve, while Canada possesses a reserve of maple syrup.
Earlier this week, Trump disclosed the names of five cryptocurrencies he wishes to see included in the strategic reserve.
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Following that announcement, the market values of the five cryptocurrencies he mentioned—Bitcoin, Ethereum, XRP, Solana, and Cardano—experienced a rapid increase.
During his presidential campaign, Trump actively sought the support of the cryptocurrency community. In contrast, former President Joe Biden initiated a regulatory approach towards cryptocurrencies, expressing concerns regarding potential fraud.
President Trump's establishment of a U.S. crypto reserve marks a significant step toward embracing digital assets as a key part of the nation’s financial strategy. By securing forfeited Bitcoin and other cryptocurrencies, the administration is positioning the U.S. as a leader in blockchain technology and innovation. The move underscores a growing recognition of cryptocurrency’s long-term value and potential economic benefits.
While uncertainties remain regarding legal challenges and implementation, this initiative signals a shift toward mainstream adoption of digital assets. With the upcoming White House cryptocurrency summit, the future of America’s role in the crypto space looks promising and forward-thinking.
