Cryptocurrency Fort Knox: Trump creates US bitcoin reserve
President Donald Trump signed an executive order Thursday establishing a Strategic Bitcoin Reserve and Digital Asset Stockpile, continuing his administration's embrace of the cryptocurrency industry.
The announcement came on the eve of a Crypto Summit Trump is scheduled to host Friday at the White House with industry leaders.
"Just as it is in our country's interest to thoughtfully manage national ownership and control of any other resource, our Nation must harness, not limit, the power of digital assets for our prosperity," the order states.
The bitcoin in the reserve will come from assets held by the U.S. Department of Treasury that were seized in court proceedings or paid in civil penalties to executive agencies.
David Sacks, the White House czar for cryptocurrency and artificial intelligence, posted on X that the U.S. has roughly 200,000 Bitcoin but "there has never been a complete audit." He added that the order requires "a full accounting of the federal government's digital asset holdings."
Sacks called the Reserve "a digital Fort Knox for the cryptocurrency." The executive order describes Bitcoin as "digital gold."
The Digital Asset Stockpile also will come from assets seized in court proceedings.
The executive order directs the Treasury and Commerce secretaries to work on "strategies" for acquiring additional bitcoin that are "budget neutral and do not impose incremental costs on United States taxpayers."
Trump signed an executive order in January creating the President's Working Group on Digital Asset Markets and charged it with investigating the creation of the Stockpile."
In a pair of social media posts Sunday, Trump mentioned five different cryptocurrencies that would be included in the stockpile, causing their values to spike.
Trump promoted cryptocurrencies on the campaign trail, telling a crowd gathered in Nashville in July for the Bitcoin Conference that he wanted to make the U.S. 'the crypto capital of the planet and bitcoin superpower of the world.' He has promised favorable regulation of the industry, which supported his campaign.
Trump also has a financial stake in the industry, launching a pair of cryptocurrency tokens and owning 60% of the crypto platform World Liberty Financial.
Sacks, a prominent tech investor, posted on X recently that he sold all of his cryptocurrency prior to Trump taking office.
President Joe Biden's administration clashed with the volatile cryptocurrency industry over regulations, and brought enforcement actions against some crypto companies.
Trump is ushering in a more friendly approach to the industry. A government stockpile of digital assets could help pay down the national debt, advocates say.
Sen. Cynthia Lummis, R-Wyo, filed legislation aimed at creating a Bitcoin reserve.
'While there may be short-term volatility, over the long term a bitcoin reserve like this will serve as an important and stable store of value,' Lummis wrote in a letter published in The Wall Street Journal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Axios
an hour ago
- Axios
Trump team proposes Iran talks this week on nuclear deal, ceasefire
The White House is discussing with Iran the possibility of a meeting this week between U.S. envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi, according to four sources briefed on the issue. The objective would be to discuss a diplomatic initiative involving a nuclear deal and an end to the war between Israel and Iran. Why it matters: The meeting hasn't been finalized yet, but it is part of a last-ditch effort by President Trump to swerve away from war and back toward dealmaking. "A meeting with the Iranians this week is under consideration," a U.S. official confirmed. The meeting could be a make-or-break moment for the question of whether the U.S. will join the war in order to eliminate Iran's nuclear program militarily. Zoom in: Trump sees the massive bunker busters needed to destroy Iran's underground enrichment facility at Fordow — which the U.S. has and Israel does not — as a key point of leverage to get Iran to cut a deal, a senior U.S. official said. Describing the decision on bunker busters as an "inflection point," the official said Trump "thinks in terms of deals and leverage. And this is leverage." "They do want to talk," the senior official continued. "But what we don't know is, 'have they been brought to their knees fully so that they realize that in order to have a country, they have to talk?' And assuming they get there, is there any degree of enrichment you would allow them to have?" State of play: Trump has so far declined to directly participate in Israel's attacks on Iran, but he has made clear that Iran must be prevented from obtaining a nuclear weapon one way or another. Israeli Prime Minister Benjamin Netanyahu is pushing him to join the war and bomb Fordow. Trump has continued to insist he believes he can make a deal, particularly given Iran's weak negotiating position. Driving the news: Trump shocked the Middle East with a Truth Social post on Monday night in which he called on Iranian civilians to evacuate Tehran immediately. Shortly thereafter, Trump dcut short his trip to the G7 summit in Canada to return to Washington and focus on the war. These two moves, together with reports of explosions in Tehran, led to reports in the Israelis press and on social media that the U.S. had joined the war. White House spokesperson Alex Pfeiffer denied the reports. "American forces are maintaining their defensive posture, and that has not changed. We will defend American interests," he wrote on X. Defense Secretary Pete Hegseth reiterated that message in an interview on Fox News and stressed Trump is still seeking a deal. "President Trump hopes there will be peace," he said. Behind the scenes: The Trump administration discussed the meeting proposal with Iran on Monday, the sources said. "We are talking on the phone but it is better to talk in person," Trump said at the G7. Trump expressed hope that Iran would agree to make a deal. "I think a deal will be signed. I think Iran is foolish not to sign one," he said. During the summit, Trump discussed with other leaders the need for a ceasefire between Iran and Israel, French President Macron told reporters. "The Americans have made an offer to meet with the Iranians. We will see what happens," he said.
CNN
an hour ago
- CNN
Trump to MAGA critics: I decide what ‘America First' means
Facing backlash from Steve Bannon and Tucker Carlson among others for his foreign policy decisions amidst the backdrop of the conflict between Israel and Iran, Trump says he came up with the term "America First" and that he decides what that means.
CNN
an hour ago
- CNN
Trump to MAGA critics: I decide what ‘America First' means
Facing backlash from Steve Bannon and Tucker Carlson among others for his foreign policy decisions amidst the backdrop of the conflict between Israel and Iran, Trump says he came up with the term "America First" and that he decides what that means.
