President Trump signs an executive order to create a government Bitcoin reserve, retaining 200,000 seized Bitcoins as a store of value. The order mandates full accounting of Bitcoin holdings and enables acquisition strategies. Trump’s role as “crypto president” promotes industry-friendly legislation as crypto prices fluctuate. A digital asset stockpile is also planned for other cryptocurrencies.
In a groundbreaking move, President Donald Trump signed an executive order establishing a government reserve for Bitcoin, marking a significant step towards the cryptocurrency’s acceptance in mainstream finance. The U.S. government will maintain possession of the 200,000 Bitcoin seized during various legal actions, ensuring they remain untouched as an invaluable store of wealth, likened to ‘digital Fort Knox’ by Trump’s advisor, David Sacks.
The order emphasizes full transparency regarding the government’s Bitcoin holdings, which have never received complete auditing. Previously, the government sold approximately 195,000 Bitcoins for a mere $366 million, a decision that would have potentially yielded around $17 billion today. The new order enables the Treasury and Commerce Departments to develop strategies for acquiring even more Bitcoin without impacting the national budget.
Once a skeptic, Trump has now embraced the potential of digital currencies, earning him the unofficial title of the “crypto president.” This shift comes as major cryptocurrency influencers, who felt sidelined by the previous administration, rallied to support Trump’s campaign, leading to promises of cryptocurrency regulations that favor the industry.
Alongside the Bitcoin reserve, Trump is advocating for encouraging legislation in Congress, while the SEC has begun to withdraw its enforcement actions against several key players in the crypto market. A “Crypto Summit” at the White House is on the agenda soon, where influential industry figures will gather to discuss the future of digital assets.
Bitcoin, which emerged in the aftermath of the 2008 financial crisis, has transformed from a niche concept into a formidable asset with a current market valuation of approximately $1.7 trillion. Despite criticism regarding its value, Bitcoin has gained traction as a hedge against inflation, thanks to its capped supply of 21 million coins.
Although Trump’s victory last year caused a surge in cryptocurrency prices, recent trends show fluctuations in Bitcoin’s value, which hovered around $86,000 shortly after the order’s announcement. The executive order also initiates a “U.S. Digital Asset Stockpile” for other cryptocurrencies, including XRP, Solana, and Cardano, following Trump’s unexpected advocacy for their inclusion.
President Trump’s executive order to establish a Bitcoin reserve reflects a transformative moment in U.S. cryptocurrency policy, aiming for mainstream acceptance of digital assets. With plans for full audits and additional acquisitions, the government embraces an innovative financial future. Trump’s pivot from skepticism to advocacy, coupled with the creation of a digital asset stockpile, resonates with his commitment to the evolving crypto industry and its potential economic benefits.
Original Source: apnews.com
