President Donald Trump recently signed an executive order creating the US’ first ever Bitcoin and Crypto reserve.
The executive order creates two separate reserves, one Bitcoin reserve and another Digital Assets reserve holding a gauntlet of cryptocurrencies, that will hold assets forfeited as part of criminal or civil asset forfeiture proceedings.
President Trump has publicly advocated for the US’ expanded involvement in Bitcoin and similar currencies.
“I am very positive and open-minded to cryptocurrency companies, and all things related to this new and burgeoning industry,” said Trump. “Our country must be the leader in the field.”
While the Bitcoin reserve will not sell Bitcoin, the Digital Asset reserve could begin sales in the near future.
Both reserves can only be expanded through forfeiture proceedings.
White House artificial intelligence (AI) and crypto czar David Sacks lauded Trump’s executive order, which antecedes a closely-watched summit between Trump and crypto leaders.
Sacks thanked Trump for a “historic moment,” adding that the US now has a “strategy to maximize the value of its holdings.”
According to Sacks, the previous lack of such a strategy cost U.S. taxpayers over $17 billion in lost value.
Crypto news sources outlined the US government had been selling Bitcoin at below-market rates, losing billions of dollars in potential profits.
Blockchain tracking sources claim the US government recently sold approximately 222,684 BTC—worth $3.28 billion at the time of sale—at an average price of $14,736 per Bitcoin.
However, Bitcoin has been trading at around $80,000 during the last year.
The dramatic difference between Bitcoin’s market price and the price the US government sold it for cost an estimated $17 billion in lost profits.
“Taking affirmative steps to centralize ownership, control, and management of these assets within the Federal government will ensure proper oversight, accurate tracking, and a cohesive approach to managing the government’s cryptocurrency holdings,” reads Trump’s order.
