The White House is making a strategic shift in cryptocurrency management, aiming to maximize the value of its digital asset holdings including XRP and Bitcoin. According to White House crypto advisor David Sacks, the Treasury Department will actively manage a consolidated “crypto stockpile” to ensure long-term growth.
Sacks made this revelation during an appearance on the All In Podcast, where he detailed the government’s new approach. Treasury Secretary Scott Bessent, a former hedge fund manager, will oversee the portfolio.
The plan includes retaining Bitcoin and a separate reserve of altcoins instead of selling them for immediate cash gains.
Also Read: Expert Says XRP Just Became a More Attractive Option, Here is Why
U.S. Government to Build a Strategic Crypto Reserve
The government now follows a different approach than past cryptocurrency actions which involved selling the government-held Bitcoin stash. Sacks said more than 200,000 BTC were sold throughout the past decade, totaling $350 million. The preserved Bitcoin assets would now have a total worth exceeding $17 billion if they remained.
The government possesses about 200,000 Bitcoin units in its current reserve and plans to build this balance strategically without incurring extra costs on taxpayers. Experts, including Senator Cynthia Lummis, have advised on cashing in a portion of its gold reserves to increase Bitcoin investment, but no formal decision has been made.
Unlike Bitcoin, the government does not plan to purchase altcoins but will retain any acquired through enforcement actions or legal settlements.
Government’s Plan for XRP
The government is considering a strategy to maximize the value of potential XRP holdings. While it does not currently hold XRP, industry experts believe that favorable regulatory policies could benefit the digital asset.
Yassin Mobarak, a prominent XRP advocate, suggested that if the government accumulates XRP, it could lead to relaxed restrictions, allowing the asset to function as intended. This could drive demand and increase its market value.
With the government’s interest in optimizing crypto reserves, potential XRP holdings may gain long-term strategic importance.
To maximize XRP’s value, the government could take steps to create a more favorable regulatory environment. If restrictions on XRP are lifted, financial institutions might integrate it more extensively for cross-border payments, increasing its adoption.
The possibility of government-held XRP could also encourage more institutional confidence in the asset, strengthening its market position.
XRP Community Reacts to Potential Government Holdings
While the government does not currently hold XRP, speculation within the industry suggests that Ripple may contribute to the U.S. crypto reserve. The XRP community believes that government involvement could influence regulatory policies in favor of the asset’s adoption.
Mobarak stated that reducing restrictions could enable XRP to serve its intended financial function. This shift could positively impact XRP’s market value. The possibility of government involvement in XRP has fueled optimism among investors and industry stakeholders.
The government’s new crypto strategy represents a calculated effort to maximize value rather than continue past liquidation practices. This shift positions the U.S. as a key player in the global cryptocurrency market.
Also Read: Ripple-SEC Lawsuit Nears End as XRP Enters Consolidation – Here is What’s Coming Next
