On Thursday, President Trump enacted an executive order aimed at establishing a national stockpile of Bitcoin and other digital currencies, according to an adviser. This bold initiative has faced considerable criticism, being labeled a ploy to benefit crypto investors.
At the core of the stockpile will be a Bitcoin reserve, valued at approximately $17 billion, derived from assets seized by the United States in various legal cases over the years. This information was shared on social media by David Sacks, the White House’s crypto and A.I. policy director.
The executive order also instructs federal agencies to devise “budget-neutral strategies” for acquiring additional Bitcoin, the leading digital currency, provided these purchases do not impose extra costs on taxpayers.
“This Executive Order underscores President Trump’s commitment to establishing the U.S. as the ‘crypto capital of the world,’” Mr. Sacks remarked in his post. He stated that the United States will not sell any Bitcoin from the reserve, comparing it to “a digital Fort Knox.”
Since taking office in January, Mr. Trump’s administration has quickly sought to elevate the crypto industry, a sector known for its volatility and past conflicts with federal regulators. The Securities and Exchange Commission has dismissed lawsuits against two of the largest U.S. crypto firms and ceased investigations into several others. Additionally, Mr. Trump is set to host crypto executives at the White House on Friday for a pioneering “crypto summit.”
Mr. Trump has a personal interest in the crypto industry’s success, raising concerns among ethics experts regarding potential conflicts of interest. He launched a business, World Liberty Financial, last year that offers a cryptocurrency named WLFI. Just days before his inauguration, he also began marketing a memecoin, a type of cryptocurrency related to an online joke or celebrity.
The White House has not yet responded to a request for comment.
The idea of a U.S. crypto reserve gained momentum last year as Mr. Trump embraced the industry during his campaign. Supporters contended that investments in Bitcoin could help reduce the $36 trillion national debt and maintain U.S. dominance in a future where the global economy relies on cryptocurrencies.
However, critics argued that the plan appeared designed to benefit wealthy crypto executives who hold significant Bitcoin, potentially inflating its price. They cautioned against tying the nation’s economic prospects to such a volatile asset.
At a conference in Nashville in July, Mr. Trump addressed a crowd of Bitcoin supporters, reaffirming his commitment to establishing a national stockpile. He reiterated this pledge on social media last weekend, indicating his intention to create a reserve that would include Bitcoin and other lesser-known cryptocurrencies like Solana, Cardano, Ether, and XRP.
This proposal faced pushback from certain crypto executives who contended that the national reserve should exclusively consist of Bitcoin, the highest-valued cryptocurrency available.
In the executive order summary, Mr. Sacks mentioned plans for a separate stockpile of digital assets aside from Bitcoin. He clarified that this collection would only include coins acquired through criminal or civil seizures, and that the government would refrain from purchasing any cryptocurrencies other than Bitcoin.
Crypto investors celebrated the announcement on social media, dubbing it a “historic day” and a “major victory” for the nation.
“By holding Bitcoin and other digital assets for the long term, the White House is adopting a forward-thinking approach,” stated Nathan McCauley, CEO of the crypto company Anchorage Digital. “Expect this move to spark greater crypto adoption among additional governments and institutions.”
