Donald Trump informed key figures in the cryptocurrency sector on Friday that he is honoring his commitments to them and will persist in delivering what the industry desires.
“I pledged to transform America into the world’s bitcoin superpower and the crypto capital globally, and we are taking groundbreaking measures to fulfill that promise,” he declared after concluding a “crypto summit” at the White House.
This meeting followed the president’s announcement on Thursday, where he activated one of his campaign promises by sanctioning the establishment of a strategic bitcoin reserve — alongside a separate US stockpile of other digital assets.
“From this day forward, America will abide by the principle that every bitcoin enthusiast knows well — never part with your bitcoin,” Trump stated.
“So far, this strategy has proven correct, and let’s ensure it continues that way,” he added.
President Donald Trump at a White House crypto summit on Friday, accompanied by members of his administration and leaders from the crypto industry. (Photo by Anna Moneymaker/Getty Images) · Anna Moneymaker via Getty Images
One participant at the summit, Coinbase Global (COIN) CEO Brian Armstrong, shared with Yahoo Finance that “President Trump has revitalized this industry,” pointing to his cryptocurrency exchange’s decision to recruit 1,000 new employees in the US due to the clearer regulatory environment established by the current administration.
Trump’s proposed bitcoin reserve will be initiated with bitcoin (BTC-USD) already possessed by the federal government, which was obtained through criminal or civil asset forfeiture proceedings, as stated by Trump’s crypto czar David Sacks in a Thursday post on social media platform X.
“This approach ensures that it will not impose any costs on taxpayers,” Sacks affirmed.
Sacks mentioned on X that the US government currently holds an estimated 200,000 bitcoins valued at over $17 billion after offloading nearly half of what it collected through criminal seizures, though he noted that a complete audit has never been conducted.
Had the government refrained from selling about $360 million worth over the last decade, its bitcoin holdings could now potentially be worth an additional $17 billion, according to White House officials.
Sacks clarified that the US will not sell any bitcoin once it enters the reserve, intending to retain it as a store of value.
He elaborated that the reserve represents “a digital Fort Knox for the cryptocurrency often referred to as ‘digital gold.'”
Armstrong of Coinbase mentioned to Yahoo Finance that with the “United States government as a bitcoin holder, potentially a buyer,” it signals to the G20 nations that bitcoin is indeed the successor to the gold standard.
Coinbase CEO Brian Armstrong. (Photo by Steven Ferdman/Getty Images) · Steven Ferdman via Getty Images
However, not all voices in Washington are as supportive. Democratic Senator Elizabeth Warren expressed her concerns on Friday in a letter to Sacks regarding the reserve and potential conflicts of interest “as the administration promotes policies that could directly benefit the president, insiders, and affluent investors.”
Sacks stated last Sunday in a post on social media platform X that “I liquidated all my cryptocurrency holdings (including BTC, ETH, and SOL) before the administration began.” On Monday, he mentioned he sold a $74,000 share in a Bitwise ETF and does not possess “substantial indirect holdings.”
He noted that he would give an “update at the conclusion of the ethics process.” The Financial Times reported that his venture capital firm retains shares in a small number of crypto startups, currently undergoing a government ethics review.
The president himself is engaged in the cryptocurrency sector. Just prior to his inauguration, Trump’s team launched an official meme coin for the 47th president (TRUMP) and one for first lady Melania Trump (MELANIA) on the solana blockchain.
Additionally, Trump and his sons support another crypto project known as World Liberty Financial, and his namesake Trump Media & Technology Group (DJT) has announced plans to invest up to $250 million from cash holdings into cryptocurrencies and other ventures linked to a project called Truth.Fi.
A crucial question remains regarding the reserve announced by Sacks and Trump: will it be utilized to purchase additional bitcoin beyond what the US government already holds?
Sacks mentioned on Thursday evening that the secretaries of Treasury and Commerce have been authorized “to formulate budget-neutral strategies for acquiring more bitcoin, as long as these strategies do not impose additional costs on American taxpayers.”
Treasury Secretary Scott Bessent stated to CNBC on Friday that seized crypto assets will be the primary contribution to the reserve, after which “we will evaluate the pathway for further acquisitions for the reserve. Although we are starting with bitcoin, the reserve will encompass a variety of cryptocurrencies.”
Scott Bessent, Secretary of the Treasury, addresses an Economic Club of New York luncheon on Thursday. (AP Photo/Seth Wenig) · ASSOCIATED PRESS
Separately, Senator Cynthia Lummis (R-WY) has discussed a potential US government program aimed at purchasing cryptocurrency using 1970s-era certificates linked to gold reserves, which would require congressional approval.
White House officials have shown support for Congress to proactively ensure that the bitcoin reserve becomes a permanent statute, as a presidential executive order like Trump’s can be rescinded by future administrations.
Lummis expressed that “The goal of a strategic reserve is to convert existing assets into bitcoin and retain them … allowing us to mitigate short-term volatility and view it as a long-term strategic asset,” during an interview with Yahoo Finance last Friday.
She remarked that continued advocacy is essential for people to grasp the “justification for having it” and its potential interaction with the US dollar’s status as a world reserve currency. Supporters argue that strategically purchasing and holding bitcoin could ultimately help the government reduce its debt.
“We believe they are highly complementary,” Lummis told Yahoo Finance.
When the president spoke on social media last weekend about his reserve plans, he indicated it would comprise bitcoin alongside other digital assets such as ethereum (ETH), XRP (XRP), solana (SOL), and cardano (ADA).
Sacks confirmed on Thursday that the president had also sanctioned the creation of a “US digital asset stockpile featuring digital assets aside from bitcoin that are forfeited in criminal or civil cases” — although the specific assets were not disclosed.
Nonetheless, Sacks clearly stated that the government will not seek additional assets for that stockpile beyond those obtained through forfeiture processes.
The announcement of the reserve and the crypto summit this week followed a period of significant volatility in the digital asset sphere. Bitcoin’s price experienced a drastic drop after the president’s actions on Thursday before recovering much of that loss.
Currently, bitcoin is down 4% since the order was issued and has plummeted 20% from its all-time high beyond $109,000 on Trump’s inauguration day in January.
On Friday, Trump met with various industry representatives, including Coinbase’s Armstrong, Strategy’s (MSTR) Michael Saylor, Marathon Digital (MARA) CEO Fred Theil, Chainlink Labs CEO Sergey Nazarov, and Gemini founders Tyler and Cameron Winklevoss.
The cryptocurrency community is hopeful that, with the backing of the White House, it will secure even more favorable developments from a GOP-led Washington, providing stability to a market eager to regain the positive momentum it enjoyed following Trump’s election victory.
A recent achievement was announced Friday by the Office of the Comptroller of the Currency (OCC), which clarified a range of crypto-related activities permitted for banks, including crypto asset custody and specific stablecoin operations.
The OCC also revoked a requirement for lenders to meet specific benchmarks before engaging in these activities.
Additionally, since Trump assumed office, the SEC has dismissed multiple significant cases against notable cryptocurrency firms and established a presidential working group focused on digital assets to explore potential legislation aimed at clarifying regulatory oversight of digital assets.
On Friday, Trump reiterated his support for Congress to enact legislation related to stablecoins and the wider crypto sector.
“This presents a tremendous opportunity for economic advancement and innovation within our financial system,” Trump remarked.
Click here for the latest crypto news, updates, and additional information related to ethereum and bitcoinprices, crypto ETFs, and the market implications for cryptocurrencies
Read the latest financial and business news from Yahoo Finance
