Former Commodity Futures Trading Commission (CFTC) Chair Chris Giancarlo, often dubbed “Crypto Dad” for his pro-blockchain stance, has made a bold statement: issuing government bonds backed by crypto assets like Bitcoin and XRP ($2.00) is more than just possible, it’s likely. Giancarlo made these remarks during an interview with Bradley Kimes on the Digital Perspective platform at the XRPL Apex 2025 conference in Singapore.

From Concept to Reality: The Government’s Crypto Strategy

During the conversation, Kimes highlighted a growing trend in Washington, policymakers and strategists discussing how the U.S. could acquire, manage, and potentially leverage digital assets like Bitcoin and XRP at the federal level. One of the more speculative ideas floated has been the issuance of crypto-backed government bonds.

Responding to the idea, Giancarlo stated, “It’s more than a possibility.” He added that federal, state, and local governments could adopt this strategy, especially as interest in digital asset reserves grows across various levels of government.

According to Giancarlo, the U.S. government has already started redefining its approach to seized digital assets. Unlike previous administrations that sold off confiscated crypto immediately, the current administration prefers to hold these assets, seeing them as valuable long-term strategic resources.

Related article: Ripple’s Comeback: Is $3 on the Horizon After Today’s Rally?

Trump Administration Supports Holding Crypto

Giancarlo revealed that President Trump criticised past governments for selling confiscated cryptocurrencies prematurely. In his view, holding onto Bitcoin seized in earlier years could have helped significantly reduce the national debt. Giancarlo argued that this shift in strategy could serve both as a financial hedge and a geopolitical asset.

What’s more, Giancarlo emphasised that the federal government doesn’t need new legislation to pursue this route. Current regulations already allow agencies to retain seized digital assets instead of liquidating them. And according to him, the White House has begun to exercise this authority.

Using Crypto Reserves Like Oil Reserves

Beyond holding digital assets, Giancarlo explained how the government might strategically deploy crypto reserves, comparing it to the U.S. Strategic Petroleum Reserve. The oil reserve, typically used in emergencies, also functions as a macroeconomic tool, allowing the U.S. to stabilise prices during geopolitical or supply disruptions.

Similarly, the U.S. could utilise a crypto reserve to influence market conditions. For example, if global adversaries, such as OPEC in oil markets or BRICS nations in currency markets, attempt to manipulate economic systems, the U.S. could release or withhold crypto assets to counter these efforts.

Giancarlo pointed out that other world powers, particularly China, routinely stockpile critical resources, such as food and metals, to strengthen their economic resilience. He argued that America should apply the same logic to digital commodities, especially as cryptocurrencies like Bitcoin and XRP continue to prove their strategic value.

Strategic Bitcoin and Digital Asset Reserves Already in Motion

Giancarlo’s comments come as the U.S. actively builds its crypto reserves under the Trump administration. In March 2025, President Trump signed an executive order establishing the Strategic Bitcoin Reserve, a digital vault holding over 200,000 BTC ($89,558.00), currently worth more than $22 billion. The reserve sources its Bitcoin from civil and criminal forfeiture cases, treating the cryptocurrency like digital gold intended for long-term storage.

Alongside this initiative, the government also launched the Digital Asset Stockpile, which comprises a diverse collection of tokens, including Ethereum, XRP, Solana, and Cardano. While the Bitcoin reserve is off-limits to traders, the Digital Asset Stockpile offers flexibility, enabling the Treasury to sell, swap, or deploy assets strategically as needed.

These reserves represent a significant evolution in how the U.S. views digital assets—not just as speculative investments, but as tools of national finance and policy.

Crypto Bonds Could Be Next

Kimes concluded the interview by comparing crypto reserves to economic instruments like oil reserves, suggesting that the U.S. might one day influence crypto prices through large-scale holdings. Giancarlo agreed, stating that nations have used reserves to control and stabilise markets for centuries, and the U.S. should now apply the same strategy to digital currencies.

According to Giancarlo, crypto-backed bonds would be a natural next step in this progression. They would allow the government to raise capital while securing its economic position through decentralised assets. As digital currencies continue gaining legitimacy on the global stage, he believes it’s only a matter of time before such instruments become part of America’s financial playbook.

The post Crypto Bonds Backed by XRP and Bitcoin Are “More Than a Possibility,” Says Former CFTC Chair appeared first on FXcrypto News.