- US President Donald Trump signed an Executive Order earlier today creating a BTC ($87,763.00)-based Strategic Reserve.
- The reserve will be made up of Bitcoin seized by law enforcement and currently held by the US Government.
- However, Crypto Czar David Sacks has confirmed the government will look for ways to purchase BTC to grow the reserve over the coming years.
The United States is officially introducing a Strategic Bitcoin Reserve after President Donald Trump signed an Executive Order earlier today.
The Executive Order dictates the US Government will hold Bitcoin assets seized as part of law enforcement to form the foundation of the digital asset portfolio.
Related: Here’s Who Will Be Attending Trump’s First White House Crypto Summit
Reserve to Include Assets Other than Bitcoin
The much-anticipated Strategic Reserve will initially only contain BTC, but as part of the Executive Order, Trump has indicated it may eventually include altcoins. This follows the US President’s post on Truth.Social earlier in the week, where he announced the digital asset stockpile will comprise XRP ($1.87), ADA ($0.37), Solana and Ethereum, alongside Bitcoin.
The US Government currently holds around 200,000 Bitcoins from criminal activities over the year. According to Crypto Czar David Sacks, the financial arm of the Government will explore ‘means of acquiring more bitcoin through avenues that will not cost the taxpayer’.
Importantly, he notes that while the Bitcoin Reserve will seek ways to add additional BTC, the digital asset stockpile (consisting of altcoins) will only use crypto claimed as the proceeds of crime.
DEEPER DIVE: So, @realDonaldTrump’s Executive Order calls for two separate things — a strategic reserve and a stockpile.
The strategic reserve will contain only $BTC (the digital asset with the most store of value) using the 200,000 or so tokens already in the government’s… https://t.co/cWYoawLekF
Earlier in the day, Sacks reiterated the importance of holding digital assets as part of a long-term Government investment strategy, rather than selling them off as the US has historically done.
Despite the seemingly positive news, Bitcoin dropped 5% immediately following the announcement. This is likely because the reserve, in its current execution, will only use Bitcoin’s the Government already owns.
However, with confirmation the US will look for ways to purchase new BTC, this trend may reverse.
The post Breaking: Donald Trump Signs Executive Order Confirming Strategic Bitcoin Reserve appeared first on Crypto News Australia.
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