Trump's crypto strategy gives bitcoin special status
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Aïda Amer/Axios
The U.S. government plans to hold onto several digital currencies over time, but only one of them gets reserve status: bitcoin.
The big picture: As the recent executive order for a strategic bitcoin reserve suggests, the world's largest cryptocurrency is the highest priority for the Trump administration's overall cryptocurrency strategy, a senior White House official said hours before the start of Friday's crypto summit.
Catch up fast: On Thursday, President Donald Trump signed the order creating both a U.S. strategic reserve of bitcoin and a "stockpile" of other cryptocurrencies.
- The main source of both will be assets that the government has or will seize in criminal proceedings or civil forfeitures.
- Commerce and Treasury may also devise budget-neutral approaches to buy more bitcoin, but it won't buy any other cryptocurrencies.
The goal of the strategic reserve is long-term value, the White House official said, comparing it to the U.S. Treasury's gold reserve.
- The official characterized bitcoin as unique, though cautioned that its reserve treatment does not mean the administration doesn't view other digital assets as important.
Meanwhile, the official downplayed the fact that four other specific cryptocurrencies identified Sunday as ones the government intended to hold were left out of Thursday's executive order.
- The five Trump had named were simply among the largest, but the order suggests the government will simply hold any seized or forfeited cryptocurrencies for the stockpile, provided they are not deemed necessary to fund victim restitution or law enforcement.
- Based on a plain-language reading of the order, the other cryptocurrencies are unlikely to be held by the U.S. unless they are found in the hands of criminals, which is not a positive sign for the leading alternative cryptocurrencies.
The bottom line: While bitcoins have a highly volatile price, the White House doesn't view that as material in the context of a long-term holding, the official said.
