Key Takeaways
- Trump's order establishes an $18B U.S. Strategic Bitcoin Reserve.
- Supporters call it historic, while critics say it lacks substance.
- The White House Crypto Summit may bring further announcements.
Late Thursday, President Donald Trump signed an executive order to create a U.S. Strategic Bitcoin Reserve, ensuring that approximately 200,000 BTC ($18 billion) seized in criminal and civil cases will be held by the federal government rather than sold.
Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been tasked with finding budget-neutral ways to expand the reserve without using taxpayer funds.
The order also establishes a U.S. Digital Asset Stockpile for non-Bitcoin cryptocurrencies, though the government will not purchase additional assets for this stockpile beyond those obtained through forfeiture.
Industry reactions: ‘historic’ or ‘underwhelming’?
Many Bitcoin advocates hailed the decision. Michael Saylor stated:
The U.S. now has the world’s largest Strategic Bitcoin Reserve.
Bitcoin Magazine CEO David Bailey called it a “historic monetary policy decision”, while Nathan McCauley of Anchorage Digital emphasized its potential to boost American economic leadership.
However, critics were unimpressed. Capriole Investments founder Charles Edwards dismissed the move as:
A pig in lipstick. No active buying means this is just a fancy title for Bitcoin holdings that already existed.
Bitcoin initially fell 5% to below $85,000 following the news but later recovered.
Crypto summit could bring further announcements
The White House Crypto Summit is set for Friday, with top industry leaders, including Brian Armstrong, Michael Saylor, and Sergey Nazarov, expected to attend.
Speculation is growing over potential crypto tax policy changes, which could impact market sentiment.
