USA: Crypto Reserve Is Coming - But not as Expected
Anyone who had expected the US government to act as a buyer on the cryptocurrency market may have been sorely disappointed: President Donald Trump has signed the long-awaited executive order to create a crypto reserve.
The creation of a US reserve for digital currencies was one of US President Donald Trump's election campaign promises. He has now issued an executive order to this effect.
Units of the best-known cryptocurrency, Bitcoin, are to be stored in a strategic reserve. However, instead of buying them on the market, only those Bitcoin that have come into the possession of the US government, for example through confiscation, will be stored.
The US Departments of Commerce and Treasury may procure additional Bitcoin for this reserve. However, this must not incur any costs for taxpayers, as digital currency commissioner David Sacks in a post on the short message platform "X".
Other digital currencies such as Ethereum and Solana are also to be stored in a further portfolio. However, US government will not actively look for ways to expand those holdings.
Confiscations from Legal Cases
The crypto holdings pooled in the reserve mainly originate from confiscations, for example from criminal or civil proceedings. According to Sacks, the holdings are estimated at around 200,000 Bitcoin. At the current exchange rate of $88,000, that would be more than $17 billion. In addition to the Bitcoin holdings, the USA owns seven other tokens worth around $400 million.
The restrictions on these non-Bitcoin holdings are even stricter. According to the order, the government would not acquire additional crypto assets for the stockpile "beyond those obtained through seizure proceedings."
Sales also Possible
And in contrast to the requirement not to sell Bitcoin, the order explicitly states that the Treasury Department "may establish policies for responsible management, including possible sales" from the stockpile.
The price of Bitcoin fell significantly at times, dropping below $85,000 at one point. It is currently trading slightly higher again at $88,420, down 3.4 percent on the previous day.