Crypto prices surge following Trump’s U.S. strategic reserve proposal
Values for bitcoin and other cryptocurrencies have surged after Donald Trump outlined plans for a U.S. cryptocurrency reserve, which will include bitcoin, ether, and smaller tokens like XRP, Solana, and Cardano.
President Donald Trump enacted an executive order on Thursday to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile, furthering his administration’s support for the cryptocurrency sector.
This announcement was made just ahead of a Crypto Summit Trump is set to host at the White House with key industry figures on Friday.
“As it is important for our nation to manage its ownership of resources responsibly, we must leverage the potential of digital assets for our economic well-being,” the order specifies.
The bitcoin included in the reserve will consist of assets seized by the U.S. Department of the Treasury during legal proceedings or paid in penalties to federal agencies.
David Sacks, the cryptocurrency and artificial intelligence czar at the White House, shared on X that the U.S. currently holds approximately 200,000 Bitcoin, although “no comprehensive audit” has been conducted. He noted that the order mandates “a detailed accounting of the federal government’s digital asset holdings.”
Sacks referred to the Reserve as “a digital Fort Knox for cryptocurrency,” with the executive order labeling Bitcoin as “digital gold.”
The Digital Asset Stockpile will also include assets acquired through judicial proceedings.
The executive order instructs the Treasury and Commerce secretaries to develop “strategies” for obtaining additional bitcoin that are “budget neutral and do not impose extra costs on U.S. taxpayers.”
Earlier in January, Trump issued an executive order to establish the President’s Working Group on Digital Asset Markets, tasking them to explore the formation of the Stockpile.
On Sunday, Trump posted about five different cryptocurrencies that would be included in the stockpile, resulting in a spike in their values.
Trump has consistently supported cryptocurrencies during his campaign, expressing a desire for the U.S. to become “the crypto capital of the planet and a bitcoin superpower.” He has promised a favorable regulatory environment for the industry, which has supported his campaign.
Trump also has financial interests in the crypto industry, having launched two cryptocurrency tokens and holding a 60% stake in the crypto platform World Liberty Financial.
Sacks, a noted tech investor, disclosed recently on X that he liquidated all of his cryptocurrency holdings before Trump took office.
The Biden administration has taken a tougher stance against the cryptocurrency industry, enforcing regulations on certain crypto companies.
In contrast, Trump is advancing a more accommodating approach towards the sector. Advocates claim that a government stockpile of digital assets could help alleviate the national debt.
Senator Cynthia Lummis, R-Wyoming, has introduced legislation aimed at establishing a Bitcoin reserve.
“While short-term fluctuations may occur, over time a bitcoin reserve would provide a stable store of value,” Lummis stated in a letter featured in The Wall Street Journal.
