Trump Administration Establishes Digital Asset Stockpile, Stops Short of Active Purchases
In a significant policy shift, the US Treasury is set to establish a “strategic reserve” for cryptocurrencies, including Bitcoin, as part of a broader effort to manage the federal government’s growing digital asset holdings. The move, announced through an executive order by President Donald Trump on Thursday, introduces two new mechanisms: a Strategic Bitcoin Reserve and a US Digital Asset Stockpile, both overseen by the Treasury.
While the initiative stops short of actively purchasing cryptocurrencies—a step some industry leaders had hoped for—it marks a notable acknowledgment of Bitcoin’s potential as a stable store of value. The Trump administration views Bitcoin, often referred to as “digital gold,” as an asset likely to appreciate over time due to its inherent scarcity.
“The reserve is like a digital Fort Knox for the cryptocurrency often called ‘digital gold,’” explained David Sacks, the White House’s crypto advisor. He revealed that the US government currently holds approximately 200,000 bitcoins, valued at over 17billion.Sacksalsohighlightedamissedopportunity,notingthatthegovernmentpreviouslysold195,000bitcoinsforjust17billion.Sacksalsohighlightedamissedopportunity,notingthatthegovernmentpreviouslysold195,000bitcoinsforjust366 million—a decision that resulted in significant financial losses for taxpayers.
The majority of the government’s cryptocurrency holdings come from criminal or civil asset forfeitures. Trump has directed the Treasury secretary to explore “budget neutral” strategies for acquiring more bitcoins, though this directive does not apply to other digital assets.
The announcement has drawn mixed reactions. Charles Edwards, founder of Bitcoin-focused hedge fund Capriole Investments, criticized the move as “the most underwhelming and disappointing outcome we could have expected,” arguing that it merely rebrands existing holdings without actively expanding them.
However, Sacks defended the policy, stating that it aligns with Trump’s campaign promise to position the US as the “crypto capital of the world” by supporting innovative digital financial instruments.
As the US takes this step into the digital asset arena, the creation of a Strategic Bitcoin Reserve signals a growing recognition of cryptocurrencies’ role in the global financial system. While the policy may not satisfy all industry expectations, it underscores the government’s evolving approach to managing and leveraging digital assets in the 21st century.
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