Title: President Trump Establishes Strategic Bitcoin Reserve Through Executive Order
New York, NY – Late Thursday, President Donald Trump issued an executive order establishing a Strategic Bitcoin Reserve and a stockpile of various digital assets, just ahead of a significant crypto summit scheduled to take place at the White House. This move marks a notable policy shift as Trump continues to engage with the rapidly evolving cryptocurrency industry.
Treasury Department to Manage the Reserve
According to the executive order, the U.S. Treasury Department will be tasked with setting up an office responsible for administering the Strategic Bitcoin Reserve. This reserve is set to be capitalized with Bitcoin (BTC) confiscated by the government through criminal or civil asset forfeiture processes.
The order emphasizes the distinction of Bitcoin, stating, “Bitcoin is the original cryptocurrency. Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic bitcoin reserve.”
In addition to Bitcoin, the executive order also proposed the creation of a U.S. Digital Asset Stockpile, which will be responsible for managing other cryptocurrencies and digital assets. In a prior social media message, Trump indicated that this stockpile would include Bitcoin, Ethereum, and three other tokens—Solana, XRP, and Cardano.
Valuation of the Reserve
Reports suggest that the government currently holds approximately 200,000 Bitcoins. Based on current market values, each Bitcoin is approximately worth $87,000 as recorded by CoinMarketCap, which implies a total estimated reserve value of around $17.5 billion.
Contrasting Approaches to Cryptocurrency
Trump’s administration appears to foster a relatively open dialogue with the cryptocurrency sector, a stark contrast to the more skeptical stance taken by the previous administration under President Joe Biden. The White House is poised to demonstrate this new relationship through its first-ever crypto summit on Friday, which is expected to attract key industry leaders.
However, the cryptocurrency market has experienced considerable volatility, influenced by Trump’s economic policies and changes in tariffs, further complicating the outlook for both investors and the digital asset ecosystem. In times of market instability, many investors tend to withdraw from riskier investments, including cryptocurrencies.
Criticism and Skepticism
The establishment of a Strategic Bitcoin Reserve has not been without criticism. Detractors raise concerns regarding the inherent value of cryptocurrencies. Hilary Allen, a law professor at American University and a notable critic of crypto, remarked, “The second you start to sell, the price is going to start tanking.” She highlighted her view that the reserve could offer little more than liquidity for existing holders.
Addressing Conflicts of Interest
David Sacks, appointed as the White House czar for AI and cryptocurrency, faced inquiries regarding potential conflicts of interest due to his past investments in cryptocurrencies. In response, Sacks clarified via social media that he had divested all of his crypto holdings before taking office and would provide updates on his ethics review once completed.
Looking Ahead: Crypto Summit and Market Impacts
The upcoming crypto summit is set to serve as a pivotal forum for discussing regulatory and policy frameworks for the cryptocurrency industry. Gerald Gallagher, general counsel for Sei Labs, noted that industry leaders attending the summit could contribute valuable insights on guiding federal policy.
Amid these developments, the cryptocurrency market continues to grapple with various external pressures, including softer-than-expected job data and overarching economic factors. As the industry braces for potential outcomes from the summit, the focus remains on collaborating effectively with regulators to navigate the changing landscape of digital assets.
This report has been updated with additional information and context. Contributions to this story were made by CNN’s Rashard Rose.
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