Trump Establishes Strategic Bitcoin Reserve To Strengthen US Economy

Donald Trump signed a decree to establish a Bitcoin reserve.

Executive order creates Bitcoin reserve:

Donald Trump signed an order establishing a strategic Bitcoin reserve. The decision came right before a White House summit with cryptocurrency executives. The reserve will hold bitcoin obtained through legal forfeitures. The White House’s crypto advisor shared details on social media. He confirmed that the reserve would store confiscated Bitcoin and four other digital assets.

A new digital reserve for the US:

Trump’s announcement grew cryptocurrency markets. He named five digital assets for the reserve: bitcoin, ether, XRP, Solana, and Cardano. According to Sacks, the government will not sell its bitcoin holdings. Instead, they will serve as a “digital Fort Knox.” The executive order also directs officials to find budget-neutral ways to acquire more Bitcoin without taxpayer costs.

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A separate “U.S. Digital Asset Stockpile” will hold other cryptocurrencies. However, the government will not actively purchase these assets. It will only store tokens seized through forfeiture cases.

Market reactions and concerns:

Following Sacks’ announcement, bitcoin prices fell over 5%, dropping below $85,000. Trump’s statements helped Bitcoin reach a record high of $109,000. Some investors expressed disappointment, calling the reserve a “fancy title” for existing government-owned bitcoin. Charles Edwards criticised the plan, saying, “No active buying means this changes nothing.”

Crypto industry influence on Trump:

Trump’s support for cryptocurrency has raised concerns. The industry has donated millions to his campaign and Republican candidates, and critics worry about favoritism toward wealthy crypto investors. Holding Bitcoin long-term could benefit taxpayers if prices rise. Sacks estimated that premature Bitcoin sales have already cost the government $17 billion.