President Trump establishes a Bitcoin reserve – here is what it means
President Trump has signed an executive decree establishing a bitcoin reserve that the government already has.
President Donald Trump signed an executive decree establishing a strategic bitcoin reserve on Thursday and stocks of digital assets, continuing the embrace of his administration with regard to the cryptocurrency industry.
The announcement came on the eve of a crypto summit, Trump is expected to accommodate the White House on Friday with industry leaders.
“As in the interest of our country to carefully manage national property and control of any other resource, our nation must exploit, and not limit, the power of digital assets for our prosperity,” said order.
Bitcoin in the reserve will come from assets held by the US Treasury Department which have been seized in legal proceedings or paid in civil sanctions to executive agencies.
David Sacks, the white house tsar for cryptocurrency and artificial intelligence, Posted on X That the United States has around 200,000 bitcoin, but “there has never been a full audit”. He added that the order requires “complete accounting of federal government’s digital asset assets”.
The bags called the reserve “a Knox digital fort for cryptocurrency”. The decree describes bitcoin as “digital gold”.
Digital asset stocks will also come from the assets entered in legal proceedings.
The executive decree orders the secretaries of the Treasury and the Trade to work on “strategies” to acquire an additional bitcoin which is “neutral budgetary and will not impose additional costs on American taxpayers”.
Trump signed a executive decree In January, the creation of the president’s working group on the digital asset markets and responsible for investigating the stock. “”
In a pair of social networks publications Trump mentioned five different cryptocurrencies on Sunday that would be included in the stock, raising their values.
Trump promoted cryptocurrencies on the campaign track, Tell a crowd Gathered in Nashville in July for the Bitcoin conference he wanted to make the United States “the cryptographic capital of the planet and the Bitcoin superpower of the world”. He promised favorable industry regulation, which has supported his campaign.
Trump also has a financial participation in the industry, launching a pair of cryptocurrency tokens and having 60% of the World Liberty Financial cryptographic platform.
Sacks, an eminent technological investor, Posted on X Recently, he sold all his cryptocurrency before Trump took up his duties.
President Joe Bid’s administration clashed with the volatile cryptocurrency industry on regulations and has brought implementing measures against certain cryptographic companies.
Trump inaugurates a more friendly approach to industry. He suggested that a Bitcoin reserve would keep the United States in the foreground of the cryptocurrency.
Senator Cynthia Lummis, R-Wyo, clôtual aimed at creating a Bitcoin reserve. While recognizing the concerns about its volatility, she said that she could help repay the national debt and stimulate the US dollar.
“Although there may be short-term volatility, in the long term, a bitcoin reserve as this will serve as significant and stable value,” wrote Lummis in a letter Posted in the Wall Street Journal.
Contribution: Bailey Schulz
