On Friday, U.S. President Donald Trump welcomed leading figures from the cryptocurrency sector to the White House, marking a significant endorsement for an industry that continues to fight for legitimacy while raising conflict of interest issues for the Republican president.
The president’s “crypto czar,” David Sacks, a Silicon Valley investor, has assembled a group of notable founders, CEOs, and investors, alongside members of a Trump working group, to develop policies intended to stimulate crypto advancement and establish the legitimacy the sector has been seeking.
On Thursday evening, Trump issued an executive order to create a “Strategic Bitcoin Reserve,” a step that Sacks claims fulfills a campaign commitment to a crucial part of his voter base.
Notable attendees at the summit will include twins Cameron and Tyler Winklevoss, founders of the cryptocurrency platform Gemini, as well as Brian Armstrong of Coinbase and Michael Saylor, CEO of major bitcoin stakeholder MicroStrategy.
Sacks mentioned in a post on X that the event would be held as a roundtable. Despite considerable interest from the industry, he noted that the White House would need to “keep it small.”
Supporters of cryptocurrencies view them as a financial revolution that diminishes reliance on centralized authorities and provides individuals with alternatives to conventional banking systems.
Bitcoin, the most widely traded cryptocurrency, is often promoted by supporters as a replacement for gold and a safeguard against currency depreciation and political unrest.
Memecoins
However, detractors argue that these digital assets mainly serve as speculative investments with dubious real-world applications, potentially leaving taxpayers responsible for repercussions if the market collapses.
The rise of “memecoins”—cryptocurrencies inspired by celebrities, internet memes, or pop culture phenomena rather than technical functionality—adds another layer of complexity.
Many in the crypto community disapprove of these tokens, fearing they could undermine the industry’s reputation amid reports of rapid pump-and-dump schemes that ensnare unsuspecting buyers into acquiring worthless assets.
Trump also grapples with conflict of interest issues.
U.S. cryptocurrency investors were significant backers of Trump’s presidential campaign, donating millions to his election efforts in hopes of reversing the Biden administration’s skepticism towards digital currencies.
Additionally, Trump has notable financial connections to the industry, partnering with the exchange platform World Liberty Financial and launching the “Trump” memecoin earlier this year, alongside his wife, Melania.
Having previously been antagonistic toward the crypto realm, Trump has begun to take substantial steps to eliminate regulatory obstacles.
The executive order established on Thursday will see the bitcoin reserve comprised of digital currencies seized through U.S. legal actions.
The utilization of these assets “means it will not cost taxpayers a dime,” Sacks remarked in a post late Thursday on X.
Sacks mentioned that had prior administrations retained their digital holdings over the last decade, they would have amassed a value of $17 billion today.
Trump has also appointed Paul Atkins, a pro-crypto advocate, to lead the Securities and Exchange Commission (SEC).
During Atkins’ tenure, the SEC has ceased legal actions against major platforms such as Coinbase and Kraken that were initiated under the Biden administration.
The previous administration had imposed restrictions on banks holding cryptocurrencies, which have since been rescinded, allowing former SEC chairman Gary Gensler to pursue aggressive enforcement measures.
Nevertheless, meaningful reforms will likely necessitate congressional action, where crypto legislation has remained stagnant despite vigorous lobbying efforts from investors, including Trump ally Marc Andreessen, a prominent venture capitalist.
