Trump pushes for government crypto holdings
While supporters cheer potential taxpayer gains, critics see it as a superficial rebranding.
President Donald Trump has signed an executive order to establish a strategic bitcoin reserve, using cryptocurrency seized in criminal and civil asset forfeitures.
The move, announced by White House crypto czar David Sacks, comes ahead of a planned meeting with cryptocurrency executives. The reserve will reportedly hold Bitcoin as a ‘store of value’, with no plans to sell it, though details on its operation remain unclear.
The initiative also includes a ‘US Digital Asset Stockpile’ for other cryptocurrencies like ether, XRP, solana, and cardano, though the government will not actively acquire more beyond forfeited assets.
While supporters argue this could benefit taxpayers if crypto values rise, critics view it as an empty gesture, since the government already holds these assets. Some industry figures, including hedge fund manager Charles Edwards, have dismissed the plan as rebranding existing holdings.
Bitcoin initially dropped more than 5% following Sacks’ announcement but later rebounded. Trump’s embrace of the crypto industry, which has invested heavily in his campaign, has also raised ethical concerns.
His personal financial ties to cryptocurrency firms have drawn scrutiny, though his aides insist independent ethics lawyers are reviewing his business dealings.
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