A Pig in Lipstick Trump's Strategic Bitcoin Reserve Criticised
Executive Order Signed:
President Donald Trump signed an executive order establishing official government cryptocurrency reserves in the US.
The reserves include a Strategic Bitcoin Reserve and a Digital Asset Stockpile (containing other digital currencies).
Source of Funds:
The reserves will be stocked with cryptocurrencies forfeited to the federal government through criminal or civil proceedings.
White House Statement:
David Sacks, White House AI and crypto tsar, compared the reserves to a "digital Fort Knox" — referencing the Kentucky base that stores much of the US gold reserves.
Criticism from the Crypto Community:
Many crypto enthusiasts criticized the government for not being bolder in their approach.
Concerns were raised about the lack of transparency in how these digital assets are handled.
Current Holdings:
Sacks revealed the federal government holds an estimated 200,000 Bitcoin — valued at around $17.5 billion.
He expressed regret, saying it was a "real shame that we did not maximise value for the American taxpayer."
Budget Neutral Strategy:
Trump's executive order tasks the Treasury and Commerce secretaries with creating strategies to acquire more Bitcoin — but only if it is "budget neutral" and doesn't increase the national deficit or debt.
Industry Reactions:
Charles Edwards (Capriole Fund) called the move "a pig in lipstick" — criticizing the lack of active Bitcoin purchasing and saying it’s just a rebranding of existing holdings.
Jason Yanowitz (Blockworks Co-Founder) supported a Bitcoin reserve but argued that including other coins sets a "horrible precedent" and risks distorting markets without a clear framework.
Russ Mould (AJ Bell investment director) took a more positive stance, stating it makes more sense to hold existing assets rather than selling dollars to buy crypto — given the US dollar's status as the global reserve currency.
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