President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve, marking a significant shift in the U.S. government's approach to digital assets.
What’s in the Executive Order?
The order establishes two major cryptocurrency initiatives: the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile. The U.S. will hold Bitcoin as a long-term strategic asset, funded with forfeited BTC, and will not sell from the reserve. The Treasury and Commerce Departments will look for budget-neutral acquisition strategies. The Digital Asset Stockpile will include Ethereum, Solana, XRP, Cardano, and may be sold at the Treasury's discretion. Full accounting by federal agencies is required.
Why Is the U.S. Stockpiling Bitcoin?
Bitcoin is seen as 'digital gold' due to its scarcity, decentralization, and resistance to manipulation, with 21 million BTC ever to exist. The order cites advantages such as inflation hedge, improved global financial standing, and economic strength. The U.S. currently holds around 200,000 BTC.
Market Reactions: Sell-the-News Event
Initially seen as bullish, the market reaction was a brief sell-off due to disappointment over the reserve's funding through seizures rather than purchases. However, long-term investors view it as a step toward mainstream adoption.
The establishment of the U.S. Bitcoin Reserve marks a major shift in the country's cryptocurrency policy. The upcoming digital asset summit may further shape national cryptocurrency strategy.
