Partisans Square Off on New Crypto Reserve
Commentary by Steven Lofchie
In support of the newly established Strategic Bitcoin Reserve and Digital Asset Stockpile (see related coverage), House Financial Services Committee Chair French Hill emphasized the need for accountability, tracking and proper management of the crypto assets.
In a public statement on the President's Executive Order, Chair Hill called for collaboration with the administration on "federal stablecoin and digital asset market structure legislation," and "particularly in regard to the structure and any funding related to the Strategic Bitcoin Reserve."
On the Executive Order, Senator Elizabeth Warren challenged the recently appointed "Crypto Czar" for potential conflicts of interest.
In a letter to David Sacks, Senator Warren asked that he (i) disclose his financial dealings, (ii) provide details on when he and his firm divested from crypto assets, (iii) explain how the Administration ensures compliance with federal ethics laws and (iv) clarify who selected the Strategic Reserve's cryptocurrencies. Senator Warren also asked whether anyone profited. Senator Warren noted that Mr. Sacks had prior investments in several crypto assets included in the reserve and demanded clarity on whether he benefited financially from recent price surges following Trump's announcements.
Commentary
The establishment of the Crypto Reserve is among the most trivial of issues. The Executive Order does not authorize the US Government to buy bitcoin. Essentially all it says is that, to the extent that the Government comes into possession of bitcoin, as a result of criminal enforcement activities, the holding of those assets should be centralized and the sale should be conducted in a way to maximize the return to the Government.
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President Trump signed an Executive Order to establish a strategic Bitcoin reserve and US digital asset stockpile.