- The U.S. government will store seized Bitcoin in a new Strategic Bitcoin Reserve.
- Other cryptocurrencies like Ethereum and Solana will be kept in a separate Digital Asset Stockpile.
- The move received mixed reactions, with some seeing it as a major step for Bitcoin and others disappointed that no new BTC will be bought.
Bitcoin Reserve and Crypto Stockpile
President Donald Trump signed an order to establish a U.S. Strategic Bitcoin Reserve. The bitcoin reserve will contain BTC seized by the government from criminal and civil proceedings. Besides, the order also sets up a distinct U.S. Digital Asset Stockpile for other cryptocurrencies seized by the government.
The U.S. Treasury Department would manage both the Bitcoin Reserve and the Digital Asset Stockpile. All BTC that the government has acquired through legitimate forfeiture will be held in reserve and cannot be sold.
This action is taken for the purpose of safeguarding Bitcoin as an important asset for the nation. All other cryptocurrencies, such as Ethereum (ETH) and Solana (SOL), will be part of the inventory, but the government will not be buying new crypto assets except through forfeiture.
Trump confirmed that this move is consistent with his vow to stand behind Bitcoin and digital assets. David Sacks, who is Trump’s crypto advisor, added that government agencies are currently examining how to deposit their seized BTC into the new reserve. Officials will also consider how to increase Bitcoin without putting any pressure on the federal budget.
Bitcoin Price Drop
The order has generated different opinions. Some feel that this step reinforces Bitcoin’s position in the U.S. and could inspire other nations to establish their own reserves. Bitwise Asset Management’s Matt Hougan stated that this would make it more difficult for the U.S. government to prohibit Bitcoin in the future.
Others, such as Charles Edwards of Capriole Investments, were let down that the order does not encompass new purchases of BTC, terming it a lost opportunity.
After the announcement, the price of Bitcoin fell by almost 5% to $85,000, possibly due to investors anticipating that the government would purchase additional BTC. Other digital currencies such as ETH, XRP, ADA, and SOL also fell by 4%-8%.
The news comes on the eve of a White House industry summit, where crypto executives will sit down with Trump’s administration to hash out policy.
Some view it as a huge milestone for crypto adoption in America, while others remain skeptical of its actual significance. For now, the government’s involvement in Bitcoin is limited to storing seized.
