- President Trump’s executive order creates a U.S. Bitcoin-only reserve and a broader altcoin stockpile.
- The Bitcoin reserve will utilize nearly 200,000 Bitcoins acquired through criminal forfeitures.
- The altcoin stockpile will include cryptocurrencies like Ethereum, XRP, Solana, and Cardano.
President Donald Trump has signed a new executive order to set up a digital asset reserve focused on Bitcoin and a national stockpile using altcoins.
Signed Thursday, the executive order lays out the long-awaited U.S. Crypto Reserve plan. A key component of the order is the creation of two separate entities: a strategic Bitcoin-only reserve and a wider digital asset stockpile.
The order specifies that the Bitcoin-only reserve will only hold the largest cryptocurrency by market capitalization.
Why a Bitcoin Reserve, and Where Does the Money Come From?
David Sacks, the White House’s AI & Crypto Czar, explained that this reserve won’t need taxpayer money. Instead, the government will utilize the nearly 200,000 Bitcoins acquired through criminal forfeitures.
Currently, the U.S. holds 198,109 BTC, worth around $17 billion, plus 750.22 wBTC valued at about $65.5 million.
Importantly, Sacks said that the previous government’s selling off its Bitcoin holdings lost taxpayers a huge $17 billion.
Because of this, President Trump has come up with a strategy to keep and increase the value of the remaining BTC. As part of this, the almost 200,000 BTC will be put in reserve as a long-term store of value.
The U.S. government is also checking out ways to get more Bitcoin without costing taxpayers anything. Trump has told Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to find budget-neutral ways to get more BTC.
Notably, an earlier proposition suggests the government could liquidate some of its gold reserves to buy Bitcoin.
Related: Bitcoin Supply Nears Limit: Price Analysis & US Reserve Effect on Market
National Stockpile for Altcoins
In addition to the Bitcoin-only reserve, the executive order asks for setting up a digital asset stockpile just for altcoins. This stockpile is expected to have cryptocurrencies like XRP, Solana, Ethereum, and Cardano, which Trump mentioned by name in a recent speech.
According to David Sacks, this stockpile will also be made up of assets seized in criminal or civil forfeiture actions. Right now, the U.S. government has 56,035 ETH, valued at around $120.96 million, and has many holdings in other altcoins and stablecoins.
While the government does not yet possess XRP, Solana, or Cardano, there are discussions about converting some of its existing altcoin holdings into these cryptocurrencies to build up the stockpile.
Related: Garlinghouse Heads to White House Crypto Summit: XRP’s Role in Trump’s US Reserve in Focus
Significantly, the executive order makes clear that the government won’t be buying more for this stockpile other than assets already gotten through forfeiture.
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