- The Treasury Department and Commerce Department will find ways to add Bitcoin to the reserve without using taxpayer funds.
- Federal agencies must review their authority to transfer BTC into the reserve within 30 days.
- Some industry leaders support BTC purchases but there are no plans to sell gold for funding.
Donald Trump has stated that the Treasury and Commerce Department will explore new pathways that would accumulate additional bitcoin holdings for the reserve without taxpayer funding. President Trump announced the initiative at the first White House crypto summit. Leading industry figures attended the event which signaled the administration’s commitment to digital assets.
The U.S. government is planning to create a national Bitcoin reserve. Federal agencies will manage the BTC holdings. The reserve will be built using Bitcoin obtained through criminal forfeitures. The U.S government currently holds approximately 200,000 BTC which is valued at $17 billion. Trump has in the past criticized decisions of the former administration to sell seized Bitcoin.
Administration Seeks Leadership in Digital Asset
The strategic reserve aims to position the United States as a leader in cryptocurrency. Trump’s executive order describes BTC as a scarce and secure asset. The policy shift reflects his campaign pledge to make the country a hub for digital finance.
Under previous administrations, cryptocurrency regulations increased which limited industry growth. Trump pledged to reverse restrictive policies. The executive order requires federal agencies to review their authority to transfer government-held BTC into the reserve within 30 days.
Industry leaders have suggested further Bitcoin acquisitions. Some speculated that gold reserves could be used to fund purchases, but officials denied those plans.
Concerns Over Transparency and Regulation
Lawmakers have raised concerns about the policy shift. Some question the potential impact on financial markets and regulation. Sen. Elizabeth Warren requested details about how conflicts of interest would be addressed. The letter highlighted concerns about deregulation and market manipulation.
Despite skepticism, cryptocurrency advocates support the initiative. Industry leaders see the reserve as a step toward integrating Bitcoin into mainstream finance. The administration remains firm in its position, emphasizing the importance of digital assets in the modern economy. Officials will outline further steps in the coming weeks.
