Trump signed an executive order to establish a strategic Bitcoin reserve in the United States.
This reserve will utilize Bitcoins acquired through government asset forfeiture procedures, ensuring no additional burden on taxpayers. It is estimated that the U.S. government holds approximately 200,000 Bitcoins, and the order mandates a comprehensive audit of these assets.
The Bitcoins in the reserve will be retained as a store of value and will not be sold. Previous premature Bitcoin sales reportedly cost taxpayers over $17 billion.
The Departments of Treasury and Commerce are authorized to develop strategies for acquiring additional Bitcoins without increasing taxpayer expenses.
Additionally, the order establishes the U.S. Digital Asset Reserve to manage other digital assets held by the government. This move fulfills the President’s promise to make the United States the “world’s crypto capital.”
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Task Force Executive Director Bo Hines played significant roles in this initiative.
However, as we understand it, the promised revolution did not happen, and the market immediately reacted with a 3-4% drop. This is because the U.S. government will not spend money on acquiring new Bitcoins for its strategic reserve.
But the most interesting point is this: the Departments of Treasury and Commerce are authorized to develop strategies for acquiring additional Bitcoins without increasing taxpayer expenses.
What kind of strategy can a government have, whose crypto reserve is built through the legal seizure of other people’s assets, and which is prohibited from using taxpayer money to acquire new assets? Well, of course, it will seize more from others.
The first targets will likely be exchanges, mixers, and other crypto projects located outside the U.S. Pressure on the industry worldwide is only expected to increase.
Our deepest fear is not that we are inadequate, our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frighten us
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