President Donald Trump has signed an executive order establishing a Strategic Bitcoin Reserve, marking a shift in the U.S. government’s cryptocurrency policy. The order, signed on March 6, creates two distinct digital asset entities: the Strategic Bitcoin Reserve and the United States Digital Asset Stockpile.
The Strategic Bitcoin Reserve will hold Bitcoin seized from criminal and civil asset forfeitures. The executive order prohibits selling Bitcoin from this reserve, ensuring its long-term value.
According to White House official David Sacks, the U.S. government holds approximately 200,000 Bitcoin. Previous Bitcoin sales have reportedly led to $17 billion in lost taxpayer value. The order aims to prevent further losses and establish Bitcoin as a strategic asset similar to gold.
Altcoins Excluded from Strategic Reserve
Unlike Bitcoin, altcoins such as Ethereum, XRP, Cardano, and Solana will be placed under the United States Digital Asset Stockpile. The government will not purchase additional altcoins beyond what it acquires through legal forfeitures.
The Treasury Department will oversee these holdings and may dispose of them based on legal and regulatory considerations.
The executive order requires a full audit of government-owned digital assets within 30 days. This review will assess the total amount of cryptocurrency under federal control and facilitate their allocation into the designated reserves.
Additionally, the Treasury and Commerce Departments will explore budget-neutral strategies for acquiring more Bitcoin without imposing costs on taxpayers.
XRP Community Reacts to Exclusion
Following the confirmation that the U.S. government will not purchase XRP as part of its reserve strategy, the cryptocurrency experienced a sharp decline. XRP’s price fell from a daily high of approximately $2.60 to $2.35 before recovering slightly to $2.50.
Source: CoinMarketCap
Some speculate that the ongoing SEC lawsuit against Ripple could lead to the government acquiring more XRP through legal settlements. Reports suggest Ripple might settle by paying a $125 million fine in XRP, potentially increasing government holdings. However, no official confirmation has been made.
The executive order solidifies Bitcoin’s role as a strategic asset while placing altcoins under a different regulatory framework. This move highlights the administration’s evolving approach to digital asset management.
Also Read: XRP Community Sparks Speculation Following Scaramucci’s Remark on SEC Lawsuit
