Trump signs executive order to establish strategic BTC reserve
On Friday, the White House cryptocurrency chief said that Trump signed an executive order to establish a strategic BTC reserve.
It is reported that the reserve will be funded by bitcoins owned by the federal government, which are confiscated in criminal or civil asset forfeiture proceedings.
But it is worth noting that the government will not purchase additional assets for the reserve in addition to assets acquired through asset forfeiture proceedings. The government will not sell any bitcoin deposited in the reserve. The Secretary of the Treasury and the Secretary of Commerce are authorized to develop budget-neutral strategies to obtain more bitcoins.
Affected by this, Bitcoin continued to fall and once fell below $85,000, and Ethereum once fell to $2,100.
🥇 It is estimated that the US government controls about 200,000 bitcoins, but has never conducted a full audit. In addition, the order also established a US digital asset reserve managed by the Treasury Department to store other confiscated cryptocurrencies.
Many crypto investors who support Trump expressed concerns over the weekend after Trump posted that in addition to Bitcoin and Ethereum, XRP, Solana’s SOL token, and Cardano’s ADA coin would also be part of the strategic cryptocurrency reserve.
“I have nothing against XRP, SOL, or ADA, but I don’t think they are suitable for the strategic reserve,” wrote Bitcoin billionaire Tyler Winklevoss. “There is only one digital asset in the world that meets the reserve criteria, and that is Bitcoin.”
Before the announcement, Castle Island Venture’s Nic Carter said that the U.S. should commit to using only Bitcoin as a reserve would “affirm Bitcoin as an important global asset, on par with gold.”
“The U.S. is clearly the most important country in the world, so their endorsement means a lot to Bitcoin,” Carter said, noting that if the strategic reserve included any other digital currency, it would make it look like another speculative fund.
