U.S. President Donald Trump signed an executive order to establish a strategic reserve of cryptocurrencies, specifically bitcoin, using tokens already owned by the government.
The big picture: The “Strategic Bitcoin Reserve” will be funded with bitcoin seized through criminal or civil asset forfeiture proceedings, with no immediate plans for the government to acquire new tokens. The announcement was made ahead of a crypto summit hosted by the White House.
- Despite hopes for active token purchases, the order reserves the right for future government acquisitions of bitcoin, ensuring no additional costs to American taxpayers through budget-neutral strategies developed by the U.S. commerce and treasury secretaries.
Go deeper: Apart from the bitcoin reserve, there will also be a “U.S. Digital Asset Stockpile,” comprising tokens beyond bitcoin obtained through forfeiture proceedings. However, the government does not intend to augment this stockpile beyond existing holdings.
- According to crypto czar David Sacks, the U.S. government owns approximately 200,000 bitcoin, and the premature sale of these holdings has reportedly cost taxpayers $17 billion. Concerns about potential conflicts of interest have arisen due to Trump’s family’s involvement in cryptocurrency meme coins and his stake in a crypto platform.
