Trump Signs Executive Order to build a Strategic Bitcoin Reserve

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Hello Readers,

Since Donald Trump was elected as the 47th US president, the world has predicted that it will definitely affect the whole crypto sector positively. Well, it is actually happening right now, as President Donald Trump has shocked the whole world as just recently, he signed an executive order as President to establish a Strategic Bitcoin Reserve in the US, bringing a sharp shift in the government’s view on Crypto and how it will recognize and handle digital assets in future. The earth-shaking announcement was further confirmed by David Sacks, the White House Crypto and AI Czar, in a post he recently published on X (formerly Twitter). Now, there is no doubt that this groundbreaking decision will be the first pillar for a major change in US’s approach to cryptocurrency, along with all implications for the financial world, investors and the future of digital money. It is happening guys.

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https://x.com/davidsacks47/status/1897802280738734236

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No Taxpayer Money

It looks like Trump did think about this decision deeply and he may have thought that adding Bitcoin to the Reserve may spark some serious debate, so he took an alternate path which at least to me seems a better and mature decision. Unlike other monetary reserves or any other traditional government programs that rely on taxpayer dollars, the Bitcoin or Crypto reserve in the US will be built using bitcoins seized from criminal and civil forfeiture cases. From now on, instead of selling off these digital assets which the government has done in the past, all of them will now be stored as part of the national reserve. According to Sacks, the newly made Crypto reserve in the US will only be funded by bitcoin that was confiscated through legal means, and this will clearly ensure that no extra financial burden falls on American citizens.

How Much Bitcoin?

Till now, a full audit has never been done on the government-owned bitcoin, but however, estimates suggest that the US federal agencies currently hold around 200,000 bitcoins. This large amount of Bitcoin didn't appear in one day, instead, these have been accumulated over a long period of time and through various law enforcement actions. Now as for this executive order, a clear and detailed review of all US federal digital asset holdings will be conducted, which will certainly provide more clarity on how much crypto the U.S. government actually owns.

Government Won’t Sell

One of the most interesting parts of Trump’s executive order is the decision to ban the sale of bitcoin from the reserve. The main goal here is to treat Bitcoin as a long-term store of value, much like what we see with gold. This pivotal decision comes after the U.S. government finally noticed that they missed out on billions of dollars in potential profits by selling seized bitcoin too early. David Sacks further pointed out that the overall past sales of Bitcoin and other crypto resulted in losses of over $17 billion in potential gains. By holding onto these assets, the government is betting on Bitcoin’s future appreciation.

U.S. Digital Asset Stockpile

Please notice that the executive order goes beyond just Bitcoin. It also establishes a U.S. Digital Asset Stockpile, which will include other confiscated cryptocurrencies apart from Bitcoin, such as Ethereum (ETH), Solana (SOL), Cardano (ADA) and Ripple (XRP). This mega level of Crypto stockpile will be managed by the Treasury Department to ensure a perfectly structured and strategic approach to handling digital assets. ### Who Will Oversee the Reserve? Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been tasked with overseeing the policies related to this reserve. The main focus here will be on budget-neutral strategies, which simply means that they will look for other unexplored and overlooked ways to manage and expand this reserve without relying on taxpayer funds. If all of this goes well, these foundation-level decisions will build the future of how the government interacts with digital currencies.

Support

Skepticism, and Debate As expected, the move has sparked mixed reactions from different financial and crypto communities across the globe. Some people view it as a positive step to make the U.S. a leader in the cryptocurrency space. Others, including well-known economist Peter Schiff, have criticized the decision. Schiff threw some stones and mockingly suggested on social media that he should start his own Bitcoin reserve, mirroring the government’s strategy. The same set of thoughts is also spinning among the investors and there are mainly 2 groups divided already to support or criticize. Some people believe that the Crypto reserve will help stabilize the cryptocurrency market. However, others worry that the government's control over such an exceptionally large amount of Bitcoin may lead to market manipulation. This tension between traditional finance and decentralized cryptocurrency will likely be the main key issue in future discussions.

By establishing a Strategic Bitcoin Reserve, the U.S. is making a strong statement for the world - cryptocurrency is here to stay, and it is already being treated as a serious financial asset by top personnel and institutions. While some uncertainties still remain, which include regulatory challenges and potential policy changes, this bold move will surely push digital assets easily on the national agenda.

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Information Used:

• coinmarketcap

• economictimes

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I hope you liked reading my post regarding the US Strategic Bitcoin Reserve and how it will affect the US and the whole world in the future. Let me know your thoughts about this topic in the comment section below and I will be seeing you all in my next post.

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