Hajra Naz
In a major step toward the cryptocurrency’s general acceptance, President Donald Trump signed an executive order establishing a government-held bitcoin reserve.
U.S. Government to Retain Seized Bitcoin
Under the new order, the U.S. government will retain approximately 200,000 bitcoin previously seized through criminal and civil proceedings, according to David Sacks, Trump’s “crypto czar.”
“The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value—like a digital Fort Knox for what many call ‘digital gold,’” Sacks stated on social media.
Full Audit of Government Bitcoin Holdings
The executive order requires a thorough audit of the government’s unaccounted-for bitcoin stockpiles. According to Sacks, the government has sold off over 195,000 bitcoins for $366 million over the last ten years, which, if kept, would be worth about $17 billion today.
Plan for Future Bitcoin Acquisitions
The order also grants the Treasury and Commerce Departments the authority to develop budget-neutral strategies for acquiring additional bitcoin, further solidifying the U.S. government’s commitment to holding digital assets.
Trump’s Shift from Skeptic to ‘Crypto President’
Once a vocal critic of bitcoin—previously calling it a “scam”—Trump has since embraced the cryptocurrency space. His presidency has seen a shift in policy, favoring pro-crypto legislation and reduced regulatory enforcement. Many crypto industry leaders, frustrated with the Biden administration’s stance on digital assets, financially backed Trump’s return to office.
Bitcoin Reserve
During his campaign, Trump pledged to establish a strategic bitcoin reserve. Alongside this initiative, he has urged Congress to pass industry-friendly crypto legislation. His administration has also begun rolling back SEC enforcement actions against major cryptocurrency firms.
White House to Host ‘Crypto Summit’
Trump is scheduled to hold a “Crypto Summit” at the White House with prominent industry leaders as part of his larger crypto-friendly agenda. The purpose of the event is to talk about the future of digital assets in the US economy and changes to regulations.
The Growing Influence of Bitcoin
In reaction to the 2008 financial crisis, the first and most valuable cryptocurrency in the world, Bitcoin, was developed. Because of its decentralized structure and fixed quantity of 21 million coins, it has become a preferred store of value even though it hasn’t yet become widely used for daily transactions.
Many investors see bitcoin as a hedge against inflation, while critics argue it lacks intrinsic value. Some supporters believe a U.S. bitcoin reserve could even help address national debt concerns in the future.
Market Reaction to Trump’s Executive Order
Cryptocurrency values skyrocketed after Trump won the election, and in December, bitcoin crossed the $100,000 mark for the first time. With the social media post “YOU’RE WELCOME!!!” he claimed credit for the milestone.
The presidential order did not, however, immediately cause a jump in the price of bitcoin; instead, it has since calmed. Shortly after the announcement, Bitcoin was trading at about $86,000.
The Creation of a U.S. Digital Asset Stockpile
The executive order creates a “U.S. Digital Asset Stockpile,” where the government will store additional seized cryptocurrencies in addition to bitcoin.
On Sunday, Trump briefly sent crypto markets soaring with a surprise announcement that he wants the government to hold additional digital assets, including XRP, Solana, and Cardano.
