In a significant policy shift, President Donald Trump has announced the creation of a strategic bitcoin reserve, positioning cryptocurrency as a key component of the U.S. economic strategy. The initiative was introduced during a digital assets summit at the White House, co-hosted by AI and crypto advisor David Sacks, and attended by industry leaders such as Coinbase CEO Brian Armstrong and Chainlink co-founder Sergey Nazarov.
Trump criticized past administrations for selling off billions worth of bitcoin seized by the government, declaring, “From this day on, America will follow a simple rule every bitcoiner knows — never sell your bitcoin.”
The strategic reserve aims to retain bitcoin seized through criminal and civil asset forfeitures rather than liquidating it. The U.S. currently holds approximately 200,000 bitcoins, valued between $12 billion and $21 billion, making it the largest national holder globally. Trump’s executive order instructs the Treasury and Commerce Departments to explore budget-neutral strategies to acquire more bitcoin without additional cost to taxpayers.
This approach marks a departure from previous administrations, which either ignored or discouraged government involvement in digital assets. Crypto experts view this as a symbolic but potentially impactful move that could inspire other nations to embrace bitcoin as a reserve asset — similar to how countries manage oil reserves.
The executive order also outlines the formation of a U.S. Digital Asset Stockpile for other seized cryptocurrencies. Unlike bitcoin, the government will not actively acquire more of these assets and may sell existing holdings. The initiative seeks to centralize oversight and establish a more structured management approach for digital assets in federal possession.
While some in the industry praised the move, others expressed skepticism. Critics argue the plan lacks concrete action, such as direct purchases. Charles Edwards, founder of Capriole Investments, called the announcement underwhelming, labeling it as merely repackaging existing holdings.
On the economic front, analysts like Russ Mould of AJ Bell caution against aggressive government bitcoin buying, suggesting it could undermine the U.S. dollar’s status as the world’s reserve currency.
As Trump’s stance on crypto evolves — a notable shift from his neutral approach in his first term — some observers have raised concerns about potential conflicts of interest. Trump’s family has since entered the crypto space with their company, World Liberty Financial, recently launching a stablecoin called USD1. However, experts argue that the real focus should remain on the financial implications of past bitcoin sales and the future value potential of retaining these assets.
Ultimately, the strategic bitcoin reserve reflects a growing recognition of cryptocurrency’s role in the global economy, even as debate continues over its place in U.S. fiscal policy.
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News Source: Finance.yahoo.com
