Trump signed it, the U.S. establishes a Bitcoin reserve, but the crypto community is likely to be disappointed

Wallstreetcn
2025.03.07 01:07
portai
I'm PortAI, I can summarize articles.

Bitcoin fell more than 5% intraday. David Sacks, the White House cryptocurrency director, stated on X that the reserve will be capitalized with Bitcoin owned by the U.S. government, which was obtained through criminal or civil asset forfeiture procedures, and the government will not make additional purchases

On March 7 local time, David Sacks, the cryptocurrency director at the White House, stated on X that U.S. President Trump has signed an executive order to establish a strategic Bitcoin reserve, but it seems to differ from previous expectations in the crypto community.

Sacks mentioned on X that the reserve will be capitalized with Bitcoin owned by the U.S. government, which has been obtained through criminal or civil asset forfeiture procedures, and the government will not purchase additional Bitcoin.

Some analysts believe these details indicate that this order is more about the "storage" of cryptocurrency rather than a "reserve." A "reserve" implies that the government would purchase cryptocurrency, while "storage" means merely holding cryptocurrency obtained through criminal or civil asset forfeiture procedures.

As a result of this news, Bitcoin fell below $86,000, dropping over 5% during the day.

Sacks wrote on X that the U.S. government is estimated to hold about 200,000 Bitcoins; however, a complete audit has never been conducted, so this executive order instructs a comprehensive review of the U.S. government's digital asset holdings.

Additionally, Sacks mentioned several details:

1. The U.S. will not sell any Bitcoin deposited in this reserve; it will be used as a means of value storage. Selling Bitcoin too early has resulted in a loss of over $17 billion in potential value for U.S. taxpayers. Now the U.S. government will formulate strategies to maximize the value of its held assets.

  1. The Secretary of the Treasury and the Secretary of Commerce are authorized to develop budget-neutral strategies to acquire more Bitcoin, provided that these strategies do not impose additional costs on U.S. taxpayers.

  2. This executive order creates a U.S. digital asset storage, which includes digital assets other than Bitcoin seized in criminal or civil proceedings.

4. Apart from assets obtained through asset forfeiture procedures, the government will not acquire any additional assets for this reserve.

  1. The purpose of this reserve is to responsibly oversee the digital assets held by the government under the management of the Treasury Department.
Source: Wallstreetcn The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.