President Trump signed an executive order on Thursday to establish a national “crypto reserve,” comprised primarily of Bitcoin, a move that has stirred controversy and drawn accusations of a plan to benefit crypto investors.
The foundation of this reserve will be a significant Bitcoin holding, estimated to be worth as much as $17 billion, accumulated by the United States through seizures in legal cases over time. The order also directs federal agencies to devise strategies for purchasing additional Bitcoin, the most prominent digital currency.
“This Executive Order underscores President Trump’s commitment to making the U.S. the ‘crypto capital of the world,'” said David Sacks, the White House’s crypto and A.I. policy advisor, in a social media post. He further characterized the reserve as a “digital Fort Knox,” suggesting that the government will not sell any Bitcoin within the reserve.
Since Trump took office in January, his administration has moved rapidly to support the cryptocurrency industry, a sector known for its volatility that has previously faced challenges with federal regulators. The Securities and Exchange Commission has ended legal actions against two key U.S. crypto businesses and stopped investigations into several others. Additionally, a “crypto summit” is scheduled at the White House, marking a first for such an event.
Mr. Trump’s personal involvement in the success of the crypto industry has raised conflict of interest concerns among government ethics experts. Last year, he initiated a business, World Liberty Financial, with a cryptocurrency called WLFI. Just days before his inauguration, he started selling a memecoin, a type of cryptocurrency connected to online humor or a celebrity figure.
