Illustration: Maura Losch/Axios
President Trump signed an executive order Thursday establishing a Strategic Bitcoin Reserve and a separate stockpile of other cryptocurrencies.
Why it matters: The “first crypto president” has committed the government to a long-term holding of the first and by far the largest cryptocurrency.
What we’re watching: Bitcoin plummet.
- It lost more than $5,000 in less than an hour after the news broke.
- “Sell the news” is often a very powerful effect in this space, but the market had already surged last Sunday, when the president teased adding other cryptocurrencies to the reserve.
What’s happening: The U.S. is going to quit selling bitcoins it seizes (and has already seized) from criminal operations of civil asset forfeiture.
- Yes, but: Typically, the sale of seized assets is used for victim compensation and to fund law enforcement efforts.
What they’re saying: “This means it will not cost taxpayers a dime,” the White House crypto and AI lead, David Sacks, wrote on X.
- Arkham Intelligence contends that the US already holds about $17 billion in bitcoin, though Sacks notes that the government is due for an audit of its holdings.
- The order also authorizes the departments of Commerce and Treasury to develop “budget-neutral strategies” to acquire more bitcoin.
The intrigue: Sacks, in the same X post, said bitcoin would be held “as a store of value” — right before the digital currency plunged.
Separately, Sacks said future seizures or forfeitures of other coins may be added to holdings in a “Digital Asset Stockpile.”
- Unlike the bitcoin reserve, the government will not seek to add to that stockpile via purchases.
What’s next: The logistics of how all this will work will be crucial. The White House will need to devise some sort of custody and audit program for its already enormous stash.
The bottom line: Sacks went out of his way to illustrate that the plan is not to use taxpayer funds to buy crypto assets.
