Emily Walker
On January 23, President Donald Trump made a historic move by issuing an executive order dedicated to cryptocurrencies. This directive introduces the idea of a “national digital asset stockpile,” stirring debates about whether the U.S. plans to actively acquire Bitcoin (BTC) or just hold confiscated coins. There’s also uncertainty surrounding the possible inclusion of other cryptocurrencies, known as altcoins, in this stockpile.
The executive order specifies that “The Working Group shall evaluate the potential creation and maintenance of a national digital asset stockpile and propose criteria for establishing such a stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through its law enforcement efforts.” This vague wording has sparked diverse interpretations among industry professionals.
Bitcoin and Altcoins: Acquisition or Just Holding?
Dennis Porter, CEO of the Bitcoin advocacy group Satoshi Act Fund, voiced his support for the initiative on X, underlining the purposeful choice of words. “We fully endorse the working group for a ‘Strategic Digital Asset Stockpile’,” Porter remarked.
He emphasized that using the term “digital asset” is strategic, echoing how the Satoshi Act Fund has approached policy discussions that have gained legislative traction in multiple states. This tactic, he argues, fosters a broader discourse on Bitcoin’s significance while ensuring its future viability, ultimately positioning the United States as the leading Bitcoin holder worldwide.
Crypto analyst MacroScope shared his thoughts on X, highlighting that the executive order sets the stage for a strategic Bitcoin reserve (SBR) with a defined timeline. “Groundwork for a strategic Bitcoin reserve is underway with a clear timeline,” he noted, indicating that a report with recommendations for regulatory advancements is expected within 180 days.
Alex Thorn, Head of Research at Galaxy Digital, clarified that the word “stockpile” might refer to merely maintaining existing assets instead of actively seeking new purchases. “‘Stockpile’ is jargon that means holding what they have, but not necessarily buying anything,” Thorn explained.
He provided details on the present cryptocurrency assets held by the U.S. government, noting, “It’s important to understand that the EO doesn’t mandate the government WILL hold ALL coins it currently possesses […] suggesting that not every coin will be indefinitely held.”
David Bailey, CEO of BTC Inc. and a prominent advisor to the Trump campaign on cryptocurrency, added that the executive order creates room for interpretation regarding future Bitcoin acquisitions. “I know this may surprise some, but Bitcoin is a Digital Asset. […] The EO does not rule out purchasing additional Bitcoin; it remains open-ended. The Working Group will finalize these specifics. We have six months to push for a substantial investment.”
Bailey underscored the necessity of legislative backing, mentioning that establishing a SBR at a significant level will depend on congressional support. He pointed to the Lummis BITCOIN Act, acknowledging Senator Cynthia Lummis’s crucial role in promoting pro-cryptocurrency initiatives.
Senator Lummis was recently named chair of the Senate Banking Subcommittee on Digital Assets. Trump’s choice of Lummis signifies a strong pro-Bitcoin and pro-SBR stance. She has been actively engaged in advancing legislation beneficial to Bitcoin, notably through the BITCOIN Act of 2024. Senator Lummis introduced a Strategic Bitcoin Reserve proposal aiming to acquire 1 million BTC over the next five years.
In her inaugural remarks as subcommittee chair, Lummis stressed the vital future role of digital assets, calling for bipartisan legislation to establish a solid legal framework. “Congress must urgently pass bipartisan legislation to create a comprehensive legal structure for digital assets and fortify the U.S. dollar with a strategic Bitcoin reserve,” she asserted.
Lummis also pointed out the challenges ahead, emphasizing the need for cooperation and robust support to solidify a Strategic Bitcoin Reserve. “There is a BIG lift ahead. It will require consensus building and loud voices. So get loud but remember that to codify an SBR we need majorities in both houses. Make friends where you can. […] Every legislator is taking this legislation seriously. The time is now. The President is a visionary leader and we are ready to bring this bill to his desk.”
In summary, President Trump has initiated two avenues for a Strategic Bitcoin Reserve: the “stockpile” managed by the working group and the new subcommittee led by Lummis. This implies that the U.S. may actively buy BTC, not just hold back confiscated coins.
As of now, BTC is priced at $104,949.
