U.S Government create Strategic Bitcoin Reserve
President Donald Trump signed an executive order creating a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” financed initially by cryptocurrency forfeited in government criminal cases.
David Sacks, the White House’s czar for AI and cryptocurrencies, announced in an X post on March 7 that President Trump had issued an Executive Order to establish a Strategic Bitcoin Reserve.
The Reserve will be capitalized using the federal government’s Bitcoin seized as part of criminal or civil asset forfeiture proceedings,”
The Department of Justice owns about 200,000 Bitcoins, which are valued at just over $17 billion.
The federal agency has occasionally sold some of its holdings on the open market via Coinbase.
However, the reserves will not be used for government-funded cryptocurrency purchases; rather, they will house Bitcoin and another cryptocurrency, the federal government has seized in criminal and civil cases.
Expectations regarding Trump’s much-discussed Bitcoin reserve included the possibility that he would persuade Congress to create the reserve, which is unlikely but could have involved government purchases of the cryptocurrency.
The US under this administration would not sell Bitcoin placed its reserve, according to Sacks, who described it as “a digital Fort Knox for the cryptocurrency.”.
Other federal agencies “will evaluate their legal authority” to transfer any Bitcoin they own into the reserve, according to the White House
The Treasury Department’s Bitcoin would seed the reserve. Additionally, it stated that the secretaries of the Treasury and Commerce departments would develop “budget-neutral strategies” for increasing the amount of Bitcoin held by the reserve, “so long as those strategies do not result in additional expenses for American taxpayers.”.
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