US Creates Strategic Bitcoin Reserve and Digital Asset Stockpile
Commentary by Steven Lofchie
President Trump signed an Executive Order ("EO") to establish a strategic Bitcoin reserve and US digital asset stockpile.
The EO aims to strengthen the United States' strategic position in the global financial system by securing and managing Bitcoin ("BTC") and other digital assets acquired through forfeiture proceedings. The EO specifically provides that the US Government is "not to acquire [Bitcoin] other than in connection with criminal or civil asset forfeiture proceedings or in satisfaction of any civil money penalty imposed by any agency without further executive or legislative action."
Under the EO, the Secretary of the Treasury must evaluate the legal and investment considerations for managing these digital assets and recommend any necessary legislation within 60 days.
Commentary
This Executive Order is less significant than it appears. As a matter of substance, all it says is that to the extent that the United States Government obtains Bitcoin as a result of bringing enforcement actions, it should have a considered policy as to whether to maintain or dispose of the Bitcoin, and how to dispose of them. In other words, if the Government comes into a big pile of Bitcoin in an enforcement action, it shouldn't dump them all at once and crash the market.