Trump Signs Order Establishing Strategic Bitcoin Reserve
WASHINGTON (Reuters) – Former U.S. President Donald Trump signed an executive order on Thursday to establish a strategic bitcoin reserve, just before meeting with cryptocurrency industry executives at the White House on Friday. The announcement has generated significant discussion about the role of cryptocurrency in the U.S. economy.
The reserve will be funded with bitcoin seized by the federal government through criminal or civil asset forfeiture proceedings, as revealed by billionaire David Sacks, the White House’s crypto czar, on social media platform X.
Attendees at the White House crypto summit on Friday anticipate that Trump will formally announce his plan to build a strategic reserve containing bitcoin and four other cryptocurrencies. Earlier this week, Trump revealed the digital assets he intends to include: bitcoin, ether, XRP, solana, and cardano, all of which experienced a market value increase following the announcement.
The specific mechanics and potential benefits of such a reserve for taxpayers remain unclear.
Trump’s actions to support the cryptocurrency industry, which invested significantly in his and other Republican campaigns during the November elections, have raised concerns. Some conservatives and even some crypto enthusiasts have expressed reservations about potential benefits for an already affluent community.
Proponents of the reserve argue that it could allow taxpayers to benefit from the price appreciation of crypto assets. However, the president’s support for the industry has also raised conflict-of-interest concerns, including his family’s launch of cryptocurrency meme coins and his stake in World Liberty Financial, a crypto platform. Trump’s aides have stated that he has ceded control of his business ventures, which are currently under review by external ethics lawyers.
